I live with my Mom and pays me to take care of her. Should I claim this money as income?
I was laid off last year so she started paying me one thousand dollars a month starting in september of this year can i count this as income as an independent contractor
Yes. Claim as income. You might want to even draw up an informal employment agreement and see if mom could squeeze a little more to cover some of your healthcare and contribute a matching to a retirement account for you. For example, you put $100 away each month in an IRA and mom contributes $100 towards your IRA.
This is great for you to do for mom, but also consider the income and benefits you are giving up to care for mom. Although you do get room and board.
Yes, you should, and pay the FICA tax so it counts toward your own social security when the time comes. Plus, if you don't claim it and she needs Medicaid within five years, they will consider this money a gift and refuse to cover her nursing home costs.
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This is great for you to do for mom, but also consider the income and benefits you are giving up to care for mom. Although you do get room and board.
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