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My Mom is not eligible for state aid. I am a retired AF Medic, CCMA with other care-giving experience, so it makes sense for me to provide her care. We want to preserve her assets for as long as possible, legally. She is mentally competent, but gets confused at times (will forget to call for help and try to get out of bed even though she cannot walk alone, a bit of ST memory loss). Since this prevents her from appropriately 'directing' me in my duties I am required to care for her as I deem necessary, in her best interest, at any time day or night. I think I can be an Independant Contractor for compensation (I will not be able to work another job) and I would be able to set much of that income aside in an account for her future enjoyment, hopefully. We will also rent her room out to her (recommended by a Tax Advisor) and set that portion aside. Would we complete a Caregiver Contract and both just file as employer/1099 at tax time, or is there more to know? We're in Texas. Thanx So Much.

Are you trying to figure out how to keep it from being used for her future care if a facility is required?

If no, then leaving it right where it is should be sufficient.

If yes, you need to leave it right where it is, it is fraud to hide or transfer assets so others have to pay for someone's care via Medicaid.
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Reply to Isthisrealyreal
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Starre64 May 8, 2019
Not sure if you read my entire description, or if you understand our situation. In no way do I wish to commit fraud or take from the system, but I appreciate your response.
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Go to the government irs website. It is very clearly stated that ALL domestic help is considered EMPLOYEES. That means payroll tax deductions ... W2, etc.

there are several good companies that do payroll for just one employee.

The penalty for getting caught is pretty stiff. Also, it will continue to contribute to your own Social Security and Medicare eligibility too.

as for the rent, and other...this would be a 1099.

Make sure you you have a written contract. This is so protect you from future accusations that you took advantage of her, and protects her eligibility for Medicaid should it ever come to it....you can show the money was NOT a gift according to their rules.
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Starre64 May 8, 2019
Yes, everything you stated is what I have found as well through my research, though there is a difference on whether I can classify as an Employee or Ind Contractor. We are meeting with an Elder Law Attorney soon, and Thank You for your input. There is a way to legally compensate me and protect her at the same time, I'll share exactly what works best for our situation so it can possibly help others.
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Yes, as Becky04473 said, consult an elder care attorney before doing anything financial or signing any documents.

Try to find an elder care attorney who also has a LLM in Tax. Or, have a meeting with both the attorney and the Tax Advisor -- all together. Make sure that the Tax Advisor understands about personal services contracts. Ask about possible ways to structure this so that you are not considered a W-2 employee or a 1099 independent contractor.
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Reply to Daughter1954
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Starre64 May 8, 2019
THAT is the 64K question; structuring it correctly BECAUSE I'm a family member. Not sure if you can avoid 1099 or Employee due to relationship status unless seeking aid. But I'll post what I find out!
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Consult an elder care attorney on how to structure this endeavor.
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Starre64 May 8, 2019
Done. Thank You.
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