You'll need to sign in or create an account to connect with an expert.
A taxpayer who is caring for a relative does not do so with a profit motive, but rather to help the relative. In such instances, the taxpayer is not in the trade or business of providing care and the income is not subject to self-employment tax. However, the payments are taxable and should be reported on Line 21, Form 1040 as ‘Other Income.’
Expenses the taxpayer incurs that are related to this activity are non-deductible personal expenses.
Self-employed Professional Caregivers typically will report income received on Schedule C.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
jbrake
New Member
DX-hound
Level 2
jbinsantamonica
Level 2
kevin-mester
New Member
edmccown1
New Member