My 65 year old mentally disabled uncle (mothers brother) lives with me. If he did not live with me, he would be in an assisted living facility. I am not engaged in a trade or business of providing care giving services, I am just doing it because I can and he is family. He can bath himself, feed himself, dress himself, etc. The services that I provide him are driving him to and from a senior center/adult daycare 5 days a week, doing his laundry, cooking all meals, cleaning his room, making bed, etc. His father, my Grandfather, has an irrevocable trust that provides me with $50,000 per year in compensation as his Caregiver. I receive 12 monthly installments, and I am paid on a 1099-MISC under block 7, non-employee compensation. The IRS states at https://www.irs.gov/businesses/small-businesses-self-employed/family-caregivers-and-self-employment-... that I should not enter the income as self-employment income, but on line 21 of form 1040 under other income. I was told that by TurboTax that I qualify to exclude this income due to IRS notice 2014-7, and even though this notice was regarding Certain Medicaid Waiver Payments May Be Excludable From Income, the payment from the trust applies... My questions. Am I correct that this income should not be considered self-employment income? Am I correct that I should include the income on line 21 of form 1040? Is TurboTax correct that I can deduct all $50,000 on line 21 as well? Thanks in advance!
