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markevans999 Asked September 2017
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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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.