My Dad is giving me money to care for my Mom. Do I have to claim this as income?

amarie, here is one thing to think about if one is trying to decide whether to quit work to care for an aging parent.... on average if a working person quits work he/she will lose over the years between $285,000 and $325,000 which includes loss of salary, plus net worth loss of the health insurance, loss of money being put into social security/ Medicare, loss of other benefits such as matching 401(k), profit sharing, etc. [source: Reuters 5/30/12]

Good luck and keep in touch.

I am a nurse and have been helping out in my spare time for awhile, but she is getting to the point of needing full-time care which my father can't handle. The plan is to keep her with us (family) as long as possible.

He should be giving you a 1099 to report the income, you pay taxes on it and that BUILDS your own SS account so you have SS when you retire. Then you sit down with a tax preparer who will itemize your allowable deductions. The fee for this is well worth what you will save on your tax return.

Do you have a written contract agreement? Has he given you a 1099 Misc for your income in 2014? It is income. I'm not sure about claiming her room as the business part of your home. A CPA could answer that.

If you don't mind me asking, but aren't you loosing a lot of income, your own health insurance, future retirement, etc. by taking care of someone with Alzheimer's in your house? How hold is your mother and father? How old are you? Why isn't he taking care of her in their house or paying for caregivers to come in and help? Has her doctor said she should be in assisted living or a nursing home?

At some point, her needs for care are going to exceed your ability as one person to do 24/7 care. What is the plan for then?