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I have a friend that offered to come and give me respite care occasionally for my wife who has Alzheimer's. All she needs is a companion, no work is involved as my wife gets anxious when she's alone. I'd like to pay her something but don't know the tax implications and don't want to get in trouble with the IRS for doing this. Has anyone been through this process?

I think this should be something between you two. I can't see paying someone occasionally to help with wife would mean getting involved with taxes. Unless you are paying her big bucks. Its like paying a babysitter.
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