I am a conservator/guardian of my father. In addition to compensation, a commissioner awarded reimbursement for mileage and purchasing a dumpster. Is this taxable?

[jbriggs11]

The commissioner awarded reimbursement using a mileage rate of 65.5 cents a mile. The dumpster was to dispose of junk in his house so we could put up his house for sale.  Please help, thank you!

[AmyC]

No, these were reimbursements related to the estate.

[Opus 17]

Who was paying?  The government, or the money was transferred from your father to you?

If it was free money from the government, it is probably not taxable since it was a reimbursement of exact costs, although it seems odd the government would give you free money for that.  If this was money from your father (but requiring the court's approval) then he is really just paying for his own cleanup, and it wouldn't be taxable if he rented the dumpster, so it's not taxable if he is paying you back for renting the dumpster and so on. 

[jbriggs11]

The commissioner (not court? I think?) approved a transfer from my father's finances as a reimbursement for the mileage and dumpster, separate from the definitely taxable compensation.  Obviously he is not a business (and is incapacitated) so he cannot show an IRS accountable plan, so I just wanted to confirm this wasn't taxable. If audited, we have the order from the commissioner but it makes no comment on whether the reimbursement is taxable.

[KrisD15]

You don't say how this income is being reported to you, on a 1099-MISC or 1099-NEC or if you are in the business of cleaning and hauling. 

I assume you are NOT in the business and that the compensation is reported on 1099-MISC and reimbursement was not reported on any tax form. 

In that case, enter the 1099-MISC as "Other Income", not like my work, not with intend to make money and received only in 2023. 

There would be no reporting the reimbursement for travel and dumpster. 

As mentioned above, this sounds like your father is paying for clean-up and his funds are going through an administrator to you.  

[jbriggs11]

We did not receive a 1099 (as guardian and conservator, our lawyer did not instruct us to issue one to ourself or anything like that.  Father is incapacitated).  We were just advised that the compensation is taxable and plan to report it as other reportable miscellaneous taxable income.  Our only documentation is the letter from the commissioner.  On the reimbursement, no we are not in the business of cleaning or hauling, and did not do any of this to make money (we both have desk jobs in government and education).

[AmyC]

You state above 
"The commissioner (not court? I think?) approved a transfer from my father's finances as a reimbursement for the mileage and dumpster, separate from the definitely taxable compensation."

The reimbursement should not be taxable based on what you are saying but then you say that it is taxable on this post. If you want to file it as income and have no forms for it, you can enter it as miscellaneous other income.
1. go to the federal income section
2. scroll to the bottom
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description 
9. Amount, enter your amount
10. Continue

 

[Opus 17]

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@jbriggs11 wrote:

We did not receive a 1099 (as guardian and conservator, our lawyer did not instruct us to issue one to ourself or anything like that.  Father is incapacitated).  We were just advised that the compensation is taxable and plan to report it as other reportable miscellaneous taxable income.  Our only documentation is the letter from the commissioner.  On the reimbursement, no we are not in the business of cleaning or hauling, and did not do any of this to make money (we both have desk jobs in government and education).

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If your father is paying you compensation (through the court) to act as his guardian, that is taxable because you are being compensated for performing a service.   It's not clear to me if this should be considered self-employment or miscellaneous income.  The reimbursements are not taxable.  

[jbriggs11]

Amy, sorry if it reads that way - I am trying to distinguish, as Opus says, the compensation which I understand is taxable, from the reimbursement which I have questions about.  I am not claiming that the reimbursement is taxable - that's why I started the thread!