My father-in-law's current financial situation does not cover in-home care while my husband and I are working. We have come to the conclusion that I will need to quit my job to care for him full time. I would be a paid caregiver simply because we cannot do without my income. I have found I can provide his care per conservatorship guidelines. What I don't know is how this will affect the income tax on the portion I'm paid. As a conservator I'm basically hiring myself. Does that make me a self-employed person? How to I file taxes for his payments to me and how is my income viewed? Self-employed, contract labor or staight employment by my father-in-law's conservatorship account? This is all confusing to me! Thanks!

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I think you can do W-2 or 1099 (self-employed) from the conservatorship account. With W-2 you will have to do payroll - Social Security, Medicare, fed and state taxes,UI, etc. ) and file with state and federal quarterly. It will be tax deductible to the conservatorship and taxable to you per W-2.
Check out "companion sitter" classification - if he meets qualifications - Each year you as conservator would do a 1099 to yourself as companion sitter (deductible to conservatorship with no tax withheld) and file on Schedule C - self employed, paying the taxes personally. Check with your tax guy for best.
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Yes, the payments you receive as guardian and conservator are compensation for your fiduciary duties. They are taxable for federal purposes and, in all likelihood, your state, too. Typically, you can just report the income as "Other" income on your tax return. However, if the services you perform are extensive enough that you are considered to be running a business, you could be "self employed", and the income could be subject to self employment taxes. Reimbursement of expenses you incur in connection with the guardianship and conservatorship are typically not considered income.
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