Several articles, blogs, and irs inquiries, have not been able to disperse my confusion. I am unsure whether to report my earnings as self employed income or misc income. Here's my situation, my mom was the caretaker of my 94 year old great grandmother. When my mom passed away Jan last year, I volunteered to step into the role. Not only do I love the hell outta that amazing woman, but I felt it made sense because I'm unmarried, no living children, and it was easier for me than it would've been the others. I moved onto the family farm into a single wide I purchased and placed 100 yards from my great grandmother's home. I sold my house, which covered the debts for my vehicles and mobile home. The only bills I have are utilities, cell, insurance, and my needs/wants. We grow alot of our food and my grandmother pays my lights and water for helping her and occasionally if I need any she's always happy to help me. I try not to ever take cash, unless it's for gas, groceries, etc. I'm gonna average my bills at less than $200 a month. I'm not in the business of caregiving. I own a little bit of rental property which helps me also. So, how do I report the income I earn caring for my grandma? Is it considered earned income still? Please inform me of any possible answers that I could deem useful. I greatly appreciate any time you spend to help me. I truly do. Thank you!!
I would expense it out for grandma and not worry about it. If she is paying the utility companies direct it should be fine.
To claim income you need a W2 or a 1099 from grandmom. For 2400 a year I may not worry about it. I don't think doing an on-line form would work in your situation. A lot of people give their children and grands money to help in some way. I don't think any of them claim it on income taxes. I think by trying to do the right thing, its going to cause a lot of problems. Count it as a gift.
I'm no tax expert, but I think you shouldn't have trouble doing your own taxes with software or an H&R Block-type person. They don't sound especially complicated.