An elderly taxpayer in poor health would often enter a nursing home for personal care that is medically necessary. This one elected to continue to live at home with the assistance of several persons who schedule various times during the week. These people are paid hourly, by actual hours worked, which varies somewhat for each one. They are understood to be independent contract laborers. What is this taxpayer required to do so far as withholding or reporting? Is a 1099-MISC the right answer? (Box 7, Nonemployee compensation?) Are any other options on 1099's required? Do any deductions from pay or contributions for Social Security required by the payer? (We assume that these persons will report the income on Schedule C of their form 1040s.)
Second, does the elderly taxpayer in poor health have rights to deduct
any of these costs as medical expenses?
