Care Givers for Old People

[Bjorn]

I've got a wealthy family and they pay cash for people to babysit their mother because she has Alzheimers.
They don't so 1099s or w2 because they find it hard to get people willing to work.

Can they take this as a medical deduction because the illness is the reason for the care giver?

Mahalo

Bjorn.

[BOB W]

I've got a wealthy family and they pay cash for people to babysit their mother because she has Alzheimers.
They don't so 1099s or w2 because they find it hard to get people willing to work.

Can they take this as a medical deduction because the illness is the reason for the care giver?

Mahalo

Bjorn.

I believe that since your client has no documentaion for payments it would not be deductible. Keep in mind, this is a household employee and it requires other type of filings (W-2) and such. 1099> NO.
945> YES

If 945 was done, then it would be deductible as medical expense, assuming the caregiver proformed no other duties in the house.

If the caregiver was a certified person there may be room for those payments (if documented) for a 1099 medical payments.

[JG EA]

As alreadty stated, not being a business they don't have the option of 1099's. If the caregivers hold themselves out as self-employed to other people and your client then they don't have to issue W-2's.

W-2's are usually required for caregivers.

No 945. They don't do 941's either. It is all reconciled on a Schedule H at the end of the year. They may also have to do SUTA taxes. Check with the state.

No W-4's unless the employee requests withholding and the employer agrees. I-9's are needed though,