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I pay her and am reimbursed by my husband's LTC policy. I am my husband’s POA and will be doing all his finances. There seems to be so many conflicting recommendations. She has her own tax # and says she will be taking care of all her own taxes. The payments are coming out of his insurance, with reimbursement to him, but I am writing her the checks. What do I need to do?

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I’d ask her to provide you a W-9 & an I-9. The W-9 & I-9 you can easily download, print out and give to her; she fills out and returns to you.

W-9 provides you the iRS issued federal taxID #, like 76-1234567 or her SS# if her biz is not an Inc or LLC. Which you use for 1099. Remember 1099 must be done by end of January; you mail her a copy, mail IRS a copy & keep a copy.

I-9 is a required Homeland Security document. In theory every employer should get I9 from all contract labor as well as employees. It would be her personal info rather than the businesses info. I-9 requires “self verify” (not E-verify) by either 2 documents (so drivers license & SS #) or single document (US Passport) are written by her into the I-9 form. I-9 you just keep on file.

I have a biz (Inc.) & am always considered contract labor by my industries standards. W9, I9 along with Copy of the initial Articles of Incorporation are routine items submitted to get paid. Sometimes a current Certificate of Good Standing (of corporation) from Secretary of State is also required.

It’s really important to keep the paper trail on this cause should hubs need to need to apply for Medicaid in the future, you want to clearly show those checks were for paid caregiving and not gifting.
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Give a 1099 in the name of whomever you write the checks to (her or the company name).
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