Find Senior Care (City or Zip)
Join Now Log In
S
SuziQ62 Asked May 2013

My daughter comes daily to feed and help my Mom while I'm at work. We pay her $20 per hour. Does she have to declare this as income to IRS?

She is a family member not a Home Health Aide but we do pay her.

bookluvr May 2013
I believe she does. I'd recommend seeing a tax professional on this. It's a fine line between extra income vs. Employer/employee. There is a maximum amount to be considered as extra income. Go over and it's now a difficult scenario. As employer/employee -both of you are subject to state/income tax.

Jinx4740 May 2013
Strictly speaking, she is "self-employed", or else she is your employee and you should pay the "nanny tax", which is a somewhat complicated issue.

Another way of looking at it is that if her income for the year is more than $5,950 and she is your dependent then she "should" file. Do you claim her as a dependent on your taxes? If not, she can earn up to $9,750 without having to file. Source: IRS 1040A instructions for 2012.

ADVERTISEMENT


capnhardass May 2013
your mother cant necessarily claim the wages for credit on her fed taxes cause she probably pays no fed tax. under 600.00 a year in cash doesnt have to be claimed for your daughter, anything over that does. id pay her cash.

ChristinaW May 2013
I don't know what the minimum is, but under a certain amount of annual income you don't have to file. I would google the question: "what is maximum income I can make without filing taxes"?

ADVERTISEMENT

Ask a Question

Subscribe to
Our Newsletter