Is payment received for taking care of a parent taxable?

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It was suggested to me on this board the get an employment agreement contract to take care of my FIL. Would I or my wife have to claim this income on Federal and state tax returns? Thanks.

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Oh yes.

There must be tax withholding, Social security and Medicare.

IRS law says that ALL in-home domestic help are employees

The penalty is very costly.

Easy way to deal with this is to just use a payroll service.
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