I've been caring for my father since September 2018. This month (June 2019) he went into hospice and began using his Long Term Care insurance he has been paying for over the last 40 years. The hospice people made arrangements for me to be an informal caregiver and I am now being paid to take care of my father. I do not live with my father but spend 8-10 hours at his home taking care of him. I have received approximately $3000 for the month of June. I may continue to receive additional payments for July until he goes into a hospice home.
I am at a loss on how I will need to file this next year. Based on what I have read, I don't believe I am an employee. Is this just "Other Income"? So in turbo tax I would say this is income from a 1099-MISC? Report the income under "Nonemployee compensation"? When I did a sample return for last year I see a question and whether my intent was to earn money or not. I have no idea how to answer this.
Just seeing if there is any advise.
Thank you
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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 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.
Thank you for the quick reply.
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