Caregiver pay

Discussion in 'General Discussion' started by Janie, Jun 8, 2011.

  1. Janie

    Janie Newbie

    Debbie,

    My mother pays me as caregiver for her care monthly. We are receiving the VA A&A. She pays me a flat amount for 24/7 care monthly. Do I need to show this as income for tax purposes and can we deduct what whe pays me from her income as health care (I am not a licensed medical professional - be do pretty much everything for her....prepare meals, prepare her clothes, clean, drive her.....).

    The CPA I went to thought we could not deduct what she pays me from her income since I am not a licensed medical professional. Just want to do things right and it seems to me if I pay income tax on what she pays me she can deduct it off her income.

    Thank you,
    Janie
     
  2. vetadmin

    vetadmin Administrator Staff Member

    Janie,

    I cannot offer you "legal" advice; however, I do know that you need to claim the income, and for you mom the pension is tax-free income, so she does not claim in on her taxes. I'm not sure what to tell you as far as claiming it as a medical expense on her return.

    I would suggest you ask her accountant or whoever does her taxes.
     

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