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She is not a relative to me, and I do not claim her as a dependent. She only pays for her meds and a few personal care items. I basically provide all her room and board. I take of getting her to all appointments. I will also deduct mileage. I plan to deduct the her living area (and associated expenses) as home business expense. Can I deduct anything for her meals, (we don't keep a separate tally on her food)? I will be issued a 1099-M as a contracted caregiver.

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Wilma, not to be rude but your agreement is wrong. You are going to pay extra taxes now. In addition, you should have extra insurance on you home to cover liability as well as other valuables. You should have an agreement that splits those costs. As for food the answer is no you need receipts.
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I realize I will pay my own self-employment taxes. This contract was set up with a family through their elder care attorney. I will deduct the square footage percentage of the house that is her space as business expense. And I will deduct mileage for taking her to appointments and picking up her meds. I was basically wondering if there is any type of straight rate deduction for her food, without actually keeping those receipts.
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I agree with the previous posters; there are several issues.

1. If all of the $2k is wages for care, it's reported as employment income.

2 If any of the $2k is for rent, it's reported as rental income, in a private home.

3. There may be issues of using your home, or part of it, as a business, and if so, there may be business tax deductions. The percentage of use as a business needs to be calculated since the entire home isn't used as a business.

4. I'm a little bit concerned about being considered as a contracted caregiver in a home that you presumably own. This is an issue on which I think I'd consult a tax accountant.
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Thats true of its just for services. If part of that is rent there are different tax rules
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Ps you'll be paying approximately 30% of your total income so you can figure save 30% of that 2000 for every paycheck so come the end of the year you'll have it. Is this through an agency or what? Do you have any time off?
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You pay your own taxes and they should be giving you a 1099 at the end of the year that's what we do with other caregivers. As far as other supplies everything needs to be in writing as to what you pay for what she paid for and keep receipts for everything.
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Who told you to get a 1099 misc totally as a contracted caregiver? Box 7 nonemployee compensation is subject to self employment taxes. Box 1 rent is not. So you need to get an agreement in place for the future. Find out what box will be filled in and ill answer from there
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See a professional tax service. There are considerable offsets, but you need to keep all the utility bills, tax bills, mileage records, grocery receipts, personal items receipts. There is a lot of bookkeeping.
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Check with your accountant. Contracted is tricky. You are responsible for ALL of your own taxes, social security contribution (employer and your portion). I would get a raise. It will be interesting to see what you will clear of this $2,000.00, my guess? Maybe half.
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