Had to stop working to care for Mother fulltime. How do I claim taxes and how does my Mom claim taxes?
Drained my IRA acct. early. Do not get financial aid. Just living off my IRA. Mom has a lot of out of pocket expenses which I pay for up front and then shell reimburse me. Sometimes giving me a little extra. I know ... Go see an expert. lol
You each file taxes separately as if you did not live together. If she is paying you, there needs to be a written contract drawn up and payroll taxes set up. Lots of families fail to do this, then when mom needs Medicaid for a nursing home, Medicaid refuses the application and considers the money a gift.
freqflyer, Very true. My goal is to get her somewhat dependent. Then I will return to the workforce. My parents have a trust that has a few dollars in it for me as well as some investments that will be available but not for 11 years. The house is paid for. So it's not that bad. I mean it could be a lot better but I won't be living in a box. My mom refuses to pay for a nursing home and wants to be at home. She's a stubborn Irish lass and there is no reasoning with her on her going to a nursing home. But her stubbornness and strong will may just pull her out of this mess she's in and be a blessing after all. =0) keeping the faith.
Kat, you had mentioned you have quit work. Here are some things to think about when you 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 not only loss of salary over the years... it also includes the net worth loss of the health insurance coverage.... loss of money being put into Social Security/Medicare..... loss of other benefits such as matching 401(k).... profit sharing.... workman's comp insurance.... company sponsored life insurance.... vacation pay, sick pay.... tuition assistance, etc. [source: in part Reuters 5/30/12]
Do you have durable POA for your mom's finances and Medical POA for making health care decisions in her behalf? Get those if you don't have them.
It sounds like from your other thread that mom needs to go back to the nursing home and you need to take care of your health, ADD and get a job in order to keep making preparations for your own retirement.
4 Answers
Helpful Newest
First Oldest
First
ADVERTISEMENT
It sounds like from your other thread that mom needs to go back to the nursing home and you need to take care of your health, ADD and get a job in order to keep making preparations for your own retirement.