Follow
Share

I currently have a caregiver that stays with mom approx 15-20 hrs per week. She is new and is saying that since her husband retired, they do not file income tax and therefore does not want a 1099 issued to her. Does anyone know what is the allowable amount per year a person can make without having to report? She is a close friend with my mom and mom feels comfortable with her. I'm trying to make this work as to not have bring a stranger into the home.

This question has been closed for answers. Ask a New Question.
Katiekate, that's true for reporting, but not for filing. IOW, the employer doesn't have to give you a 1099 for less than $600, but that doesn't mean you don't have to include it in your income.
Helpful Answer (0)
Report

The threshold is $600 per year
Helpful Answer (0)
Report

Income less than $600/year does not require a 1099. However, it is in your best interest to issue a 1099. In FL, medical and personal-related caregiving duties such as bathing assistance, toileting, dressing, etc are legitimate deductible items for your Mom's tax return. We have been itemizing these expenses for six years on my MIL's tax return. I empathize with the Caregiver, but you need to protect your interests as well as your Mother's... Consult an Elder Care Attorney for more information. We learned so much by doing so.
Helpful Answer (0)
Report

The short answer is that it's impossible to know without knowing how much other income the couple has each year. Social security (I assume that's the other income) become partially taxable at a certain point depending on how much other income there is.

The other issue is accounting for the senior's outflow of income in year before applying for Medicaid, if Medicaid becomes necessary. Something that looks like a gift in the previous five years could cause trouble in a senior's eligibility for Medicaid.
Helpful Answer (0)
Report

A 1099 may not be appropriate at all. The caregiver may need to be treated as your employee. Check that out while you are doing research.
Helpful Answer (0)
Report

Check the IRS website and search for caregiver. Most times a caregiver is considered an employee. Mom should be paying taxes, disability, Medicare, etc for her. This should be done legally. Check with an elder law attorney. Or call the Department of Labor.
Helpful Answer (1)
Report

The limit you can pay household help without reporting it is very small perhaps $2,000 a year or less
Helpful Answer (0)
Report

Can you ask an accountant?
Or you may want to Google the subject. The answer is out there.
Helpful Answer (0)
Report

Thanks MacinCT ! My thought is there used to be an allowable amount..not sure if that's changed. Another family member handles the bookkeeping but she claims to have problems finding an answer.
Helpful Answer (0)
Report

You may have to insist on this. The IRS will eventually catch up on this.
Helpful Answer (1)
Report

This question has been closed for answers. Ask a New Question.