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Level 2
May 30, 2023
Question

Schedule H - or other advice?

  • May 30, 2023
  • 1 reply
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I am paying my daughter for in-home care for my wife. She does this as FT job and it was suggested to make her a (household employee) and generate a Schedule H. If we did,  as her employers would we  be able to deduct any portion of her wages or medicare/ssi? If so, how do you determine the percentage of her wages,medicare,ss? This is all new to me and I greatly appreciate any help or suggestions. 

 

Thank you!

 

1 reply

Level 15
May 30, 2023

This publication will educate you about your responsibilities for your employee. The expenses are an itemized medical deduction if you itemize. You can only deduct a total amount of medical expenses greater than 7.5 percent of your AGI. If the employee does household chores in addition to care, only the portion of expenses for care is deductible. 

https://www.irs.gov/taxtopics/tc756#:~:text=Household%20employees%20include%20housekeepers%2C%20maids,contractors%2C%20are%20not%20your%20employees.