Elder Caregiver

Forum|Forum|3 years ago
January 6, 2023
1 reply
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My mom lived with my sister in law and a caregiver contract was written which indicated that she was an independent contractor and not an employee. My sister in law was paid $3000 a month. What type of tax form would need to be submitted for the payments that were made? Can the payments also be written off on the taxes that I file?

xmasbaby0

Level 15

Please provide some additional details. Whose home was the care provided in---your mother's home or the SIL's home? Whose names were on the contract? Who paid the SIL? (..."taxes that I file....") Is your mother your dependent on your tax return?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Viktor2419Author

Level 2

My mom lived with my sister in law at my sister in laws house and my sister in law is listed on the contract. The money was paid out of my mom's bank account. Can my mom claim the amount paid on her taxes?

xmasbaby0

Level 15

It is not clear if the "care-taking" was for medical reasons or for some other purpose. If your mom has some medical condition(s) that required the care then the cost -- or some part of the cost --- might be deductible as a medical expense on your mom's tax return since her money was used to pay for the care. And whether it is deductible for your mom or not, your SIL must enter self-employment income on a tax return of her own. Your mother does not have to issue a 1099 to her. SIL can enter that income without a 1099.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.) expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2022—do not include any amounts that were covered by insurance or that are still outstanding. Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950 (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950 (65 or older + $1750)

MARRIED FILING JOINTLY $25,900 (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD $19,400 (65 or older +$1750)

Legally Blind + $1750

But we do not know enough about this situation. Others may have some thoughts.

@Critter-3 @Opus 17 @DoninGA ????