What are the Indiana tax laws about paying an adult child to take care of their parents?

[kenpachi79]

I would like to know the tax implications of being an employee (W-2) or independent contractor (1099-INC) caregiver to my parents in Indiana.  Thank you.  

[ShirlynW]

There aren't any special tax credits for adults taking care of their parents. As an Indiana resident with a gross income that exceeds your total exemptions, you are required to file your tax return with the state. You will typically need to fill out Form IT-40.