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I am going to start taking care of my grandmother, she is 89 and in need of a full time caregiver she is able to pay me to do this for her, as i will not be able to get a job. But how can i go about paying taxes on what she pays me and basically have money going towards soc.. everything you would normally have with an average job. what forms and steps do i need to set this up. we live in California if that makes a difference. do i need to get a business licences? and if so where do i go to start that. Thank you for your time and any information anyone can share with me on this. Happy holidays

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Someone with one employee is not required to provide health insurance. In this case, Grandma should issue a 1099-MISC to you (with your SSN on it) and the IRS to report your pay. Have a pro do it for you the first year. Once you have a model to copy, it will be easier to do the next year.
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I stated the above incorrectly. Income tax and SE taxes have to be submitted quarterly if you are self employed. The final filing of taxes is the same as every else's with the April deadline.
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I am seeing this as very uncomplicated. You can be self employed, using your own SSN and submitted SE taxes each year to cover your social security. It is the way I would do it. If your grandmother is named as your employer, she becomes liable for your health insurance. If you are self employed, you are responsible for yourself. If you want to separate income, you can get an EIN for yourself if you choose self employment. This could be a good option if you are married and want to report this income separately as a business for some reason.
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This really isn't so tough to set up, but I think having an elder law attorney help you will it, and also deal with any other documents that should be set up, such as POA, would be worthwhile.
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You should see an elder law attorney that will prepare everything for you. And do not hesitate to do this, you want everything done in compliance with regulations, and it sounds as if there is money to pay for an attorney. You can go to AVVA, ask attorneys questions, receive responses, and see ratings by peers and clients as well. Do not take a shortcut on this it could come back to haunt you or your grandmother.
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Your taxpayer ID # is your social security number. If she is your employer, she would need and EID (employer id#) and submit payroll reports quarterly. In her condition she may not be able to do this. Try working with a homecare agency.
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