I left my job to go full time caregiver for both my parents. First it was just my dad who suffers from I believe frontal temporal lobe dementia and vascular dementia. My mother is now declining, staying depressed because it is hard to deal with seeing the drastic changes in dad day by day. She also is a fall risk and needs help with medications, cooking, cleaning, etc.

Anyways, she is going to move into an apartment. In order for myself to live there I need to show some form of income? Has anyone ever dealt with this before? I have a caregiver agreement drawn up, showing everything I do and an agreed upon compensation. However, do I need to obtain and federal employee ID number? As if I was setting up my own business and calculate my tax's to take out from that pay? Pay is coming from my father's VA disability, which is what its suppose to be used for anyways, paying me a small 300 a month would be far cheaper than any other third party program. We have hospice as well, but that is not every day.

A sole proprietor does not get paychecks which have taxes come out, they have draws. You would need to set up an s-corp to get paychecks. For tax purposes, you need to do a quarterly income statement and submit quarterly estimated tax liability payments. Depending on your state, you could get hammered with self employment taxes. You should set up a separate bank account for the business. Make sure you are doing proper invoicing.

You need to register for a dba, in my state it is $10 at the courthouse. You also need a liability policy.
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Reply to tacy022

If you are a self employed sole propietor without hiring any employees, you do not need a federal.ID number. You just do the taxes under your SS number. State laws differ.
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Reply to vegaslady

I would say no you wouldn't have to obtain a federal employee ID number but I would consult with a CPA I don't know if your Mom qualifies for Medicaid but you can be dual Medicare and Medicaid once qualified states have a program I believe its called HCBS Home and Community Based Services which depending on her ADL you would be able to be compensated up to $18 an hour by the state
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Reply to ruustyk

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