Question

Family Caregiver

Forum|Forum|5 years ago
February 24, 2021
1 reply
0 views

My mother is 94 and she has recently been approved by her long term care policy to have home care. She will pay me and then be reimbursed by her insurance company. I will be providing the home care for her for the time being. I am providing her care, working with her doctors, controlling decisions, etc.

My two questions are - based on the family caregiver reporting requirements and in my capacity as the decision maker - income would be reported on a 1099?

Second question - the income would need to be reported on a schedule c or as other income?

Thank you for your feedback

RayW7

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 on a 1099-NEC 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.

https://www.irs.gov/businesses/small-businesses-self-employed/family-caregivers-and-self-employment-...