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Only caregiving costs that are medically related are deductible. You would itemize them as a medical expense, subject to the 7.5% floor.

https://www.elderlifefinancial.com/resources/caregiver-expenses-can-be-tax-deductible/#:~:text=Caregivers%20of%20seniors%20can%20deduct,including%20physical%20and%20occupational%20therapy.
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Reply to olddude
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spikebreon, IRS rules are always changing, so it would be best to speak with an Accountant or CPA.

Also, hopefully you are paying a Workman's Comp insurance policy on your "employee", check to see if that can be deducted from your taxes.
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Reply to freqflyer
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I think I wouldn't do this wrong, so why not consult a tax person about this, or go directly to the IRS website. From the internet in seconds I get the following:


"To comply with the tax reporting rules, a caregiver can file Form W-7, Application for IRS Individual Taxpayer Identification Number1. Independent caregivers will file Form 1099 to summarize payments they’ve received throughout the year as well as all taxes they’ve paid to the IRS2. Household employees will file a personal income tax return using Form W-22. The caregiver must still report the compensation as income of his or her Form 1040 or 1040-SR and may be required to pay self-employment tax depending on the facts and circumstances3. The employer has to obtain federal and state household employer tax IDs, calculate and withhold taxes for the caregiver, track all of employer taxes for the caregiver, file federal estimated tax payments four times a year, file state employment tax returns and remit state tax dollars, prepare and distribute Form W-2 to the caregiver at year-end."

Basically. as with all monetary things care-wise, this requires a bit of hunt-and-peck research for both Federal and State. Good luck. Your obligation is filing forms for what you paid. It is on them to do their taxes.

You should keep of course your own paper trail and copies of everything.
This is your obligation, so do check it out online for your State and Federal taxes if you are the POA who files for your elder.
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Reply to AlvaDeer
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