My sister had been a dependent on my father's taxes, who was gifting her for her help. My father passed away in January, and my mother does not have enough income to pay her for her caregiving.
I want to pay my sister as caregiver for my mother (not my household) so that my sister gets Social Security credits. I can’t pay my sister as a Household employee, since it is not my household. I do not have a business, so I can't have her as an employee. I am thinking I will need to pay her as I would an independent contractor. I am not trying to get any tax credits, but need to know if I need to declare payments to her on my 2020 taxes.
Should my sister complete an SS-8 with me as the Firm? Do I need to get an EIN to pay an independent contractor? I will be doing the taxes for both my sister and myself.
