Family Caregiver

[BH04292020]

My mother is 94 and she has recently been approved by her long term care policy to have home care.  She will pay me and then be reimbursed by her insurance company.  I will be providing the home care for her for the time being.  I am providing her care, working with her doctors, controlling decisions,  etc. 

My two questions are - based on the family caregiver reporting requirements and in my capacity as the decision maker - income would be reported on a 1099?

Second question - the income would need to be reported on a schedule c or as other income?

Thank you for your feedback

[RayW7]

Since you are not in the trade or business of providing care-giving services, any income you receive for taking care of your father would NOT be reported on a 1099-NEC as Non-employee compensation, and you would NOT owe self-employment tax on it.

Instead, you would report the full amount as "Other Income" on Line 21 of your tax return.

https://www.irs.gov/businesses/small-businesses-self-employed/family-caregivers-and-self-employment-...

[BH04292020]

Thank you for the information.  

Does my mother have to report the payments to me to the IRS?   I don't consider myself her employee as I am the decision maker at this point in time. 

[ThomasM125]

Your mother would not have to issue the form 1099-MISC because it is only required when made in the course of operating a trade or business.

You can read more about that here:

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf