Re: wife is caregiver for her dad and is getting paid

wife is caregiver for her dad and is getting paid - how to report this?

Hello - my wife is caregiver for her dad. he now lives with us. we have a personal care agreement that specifies the pay for this job - which is 24/7 365. I have reviewed the info on the IRS website and still can't determine how this income should be reported and how it should be treated on our joint tax return. also can't determine if this is self-employment or is she "his" employee. as well as the tax implications. any help would be appreciated.

posted

The income you receive as a caregiver for a family member is taxable income, but it is not subject to self-employment tax. You should report the income on Form 1040. Please go to Federal Taxes>Wages & Income>Less Common Income>Miscellaneous Income>Other Reportable Income to report this income.

For more information use this IRS Link: Notice 2014-7

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