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March 8, 2020
Question

independent contractor

  • March 8, 2020
  • 1 reply
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I am an independent caretaker with a contract to take care of my mom. I get paid from an irrevocable trust. First year doing taxes I have no idea where to start. I heard im considered self employed but don't have to pay self employment taxes due to this situation. I don't have any forms as I was told I don't need any by a tax person But how do I try to show what I made? I also know I have to pay taxes of on all of this. I need help on what to do and what I need to take next steps.

    1 reply

    March 9, 2020

    Special rules apply to workers who perform in-home services for elderly or disabled individuals (caregivers). Caregivers are typically employees of the individuals for whom they provide services because they work in the homes of the elderly or disabled individuals and these individuals have the right to tell the caregivers what needs to be done. These services may or may not be provided by a family member. If the caregiver employee is a family member, the employer may not owe employment taxes even though the employer needs to report the caregiver's compensation on a Form W-2. See Publication 926, Household Employer's Tax Guide for more information.

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