My 96 year old mother was living in my home in Florida where I was am her sole caretaker for the last 5 years. This past April she fell fracturing her left hip, pelvis and elbow. She had hip replacement surgery, they left her pelvis and elbow to heal by themselves and she was placed in a Health & Rehabilitation Center. She did receive rehab but it has been determined by the doctors and rehab specialists she will make no further progress and will be staying in the facility permanently. I have engaged an Elder Care Attorney to help navigate the transition from Medicare to Medicaid. Regarding the Personal Care Contract advised by the attorney. This contract will enable funds to be paid to me (her daughter/POA) from her to take care of her personal needs that Medicaid does not. My sole income is Social Security. I need advise re: do I need to claim this Personal Care Contract as income on my taxes? If so can you assist me in calculating what the income tax would be for federal with the total Personal Care Contract income of approximately $55,000 lump sum this year. Per the attorney the contract would state I will be paid $17 per hour for 3 hours per day x 6 days x 52 weeks/year x 3.18 years (per the Florida Medicaid life expectancy table.) Let me know if there are any further questions you need answered to provide me with the guidance I seek. Thank you.
