She is unemployed and I provide her with room and board, and I pay her a few hundred monthly for pocket money. For Tax purposes,

1. Can I claim her as a dependent?

2. Am I her employer and have to provide her with a W2 form?

How long has she lived with you? Did she have income in 2018 (including unemployment? If so, what is a ballpark number.

As for W2, the answer is no under the assumption you did not pay taxes in and do 941 payments and reporting.
Helpful Answer (0)
Reply to tacy022

I would speak with a CPA that understands how that works in your specific situation.

Maybe get a NELA certified elder law attorney that can help you set all of this up for the best tax advantage for all. As well as ensuring that you have all the proper documents so you can do what is needed and God forbid, if something happens to you, your daughter will have the authority to do what you desire.
Helpful Answer (1)
Reply to Isthisrealyreal

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