1099-misc from state agency has amount shown as non-employee comp - was earned as "provider" for child with severe autism. Code sec 131 "difficulty of care" payments seems to apply? Making amount 1. NOT taxable? 2. NOT SE taxable?
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State Payment
Is the child your client's child?
Or is your client providing services to someone else?
BMKBurton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process. -
Koss
2 different clients - one is mother, other is grandmother....Comment
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Foster Care?
Based on my understanding, these payments are not taxable at all, unless the person is in the business of providing foster care.
If it is their own child, then it seems like it isn't taxable. In the case of a grandparent, it might be a foster child. But if she doesn't have other foster children, then she's not in the business of providing foster care...
BMKBurton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.Comment
Comment