Announcement

Collapse
No announcement yet.

Household Employee ?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Household Employee ?

    I have a very old widow in ill health (been in & out of hospice) that has been paying the "Visiting Angels" for home health care.
    Been wring these cost off as medical expenses as she requires around the clock supervision for her doses of medicine.
    The cost is pretty pricey. The deduction for this service has wiped out her taxable income for the past couple of years.
    I've recently been made aware that her daughter has become unemployed and has assumed part of the care for mother.
    Mother pays the daughter for this. Daughter's position is this is a gift from mom and not wages.
    Anybody run into a situation like this ? How did or would you handle it ?
    Thanks for comments.

    #2
    Originally posted by RWG1950 View Post
    Mother pays the daughter for this.

    If she is being paid FOR those services, it is wages. If the mother would be giving her this money whether or not the daughter was helping her, it is a Gift.

    The fact the mother has been paying wages to somebody for this and is now giving money to the daughter for the same purpose definitely makes it seem like wages to me.

    Comment


      #3
      The fact that daughter was not providing on-site care previously, but assumed this role for remuneration after she became unemployed, suggests it could be for wages. Is she drawing unemployment due to termination of her former job? That would add another element to the scenario. Gifts would not be reported as wages, and may not affect her benefits. Also at play is how this money is transferred to the daughter. Is she receiving money calculated on the hours worked? Would reduced payments to Visiting Angels make any difference on the mother's tax return? Was the mother in the habit of gifting funds to her daughter? Would funds to the daughter exceed the gift tax exclusion? Facts & circumstances.
      Last edited by Burke; 09-09-2019, 03:19 PM.

      Comment

      Working...
      X