Follow
Share

My elderly mother refuses to leave her house, so we pay about $64,000 per year for home care (not nursing) aides who fix meals, help her get around, but cannot handle medicine. Is the $64,000 considered a gift under federal tax code?

This question has been closed for answers. Ask a New Question.
Find Care & Housing
Geewiz, thanks for the update :)
Helpful Answer (0)
Report

A minor addition to FF's response. The gift tax just went up to $15,000 beginning 2018.
Helpful Answer (0)
Report

As a retired CPA, my first thought is that you may have a tax deduction if she is dependent on caregivers for ADLs. Talk to your tax accountant.
Helpful Answer (2)
Report

Rdvare, this is complex. This is a $64,000 question that you will need to ask a CPA or call the IRS and get their ruling on that.

Let's hope it isn't considered a "gift" otherwise you could wind up paying a Federal "gift tax". You are allowed to "gift" $14k per year to someone without dealing with a gift tax. If married, your spouse could also gift $14k to the same person but the check would need to have his signature. Total of $28k.

I realize it isn't easy to get one's parent to move into senior living, where the parent would get 24 hour care, and as their ability lessens, they are still in a very safe place. I know my Dad was glad he no longer had to deal with the real estate property tax, utilities, plumbing issues, homeowners insurance, mowing, shoveling, and any repairs.

Are the Aides are from an Agency? If the Aides are self-employed your Mom would need to purchase "workman's comp" insurance just in case an Aide gets hurt on the job. With a licensed caregiving agency, the caregivers are "employees" thus already are insured.
Helpful Answer (0)
Report

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