What is the average cost of taking care of parent in my home?
What is reported for income tax purposes? We do not claim her as a dependent. She gives me so much money a month to pay for her food, clothing, medical expenses, room maintenance transportation, etc.
My mom still takes out exactly what she did before they moved in for thier allowance, gambling, etc. She gives me cash. for groceries and such.They pay the the electric and cable (which have doubled since they moved in) and my gas on occasion since I drive them everywhere. i am hoping this will be fine, although we should not run out of thier money in their lifetime, and I am a co owner on all accounts (done years ago) But this does still worry me sometimes...
I can't suggest strongly enough that you make an appointment with an elder law attorney. Medicaid is ruthless. Undotted i's and t's mean big money. Get all your questions together and make an appointment. Mom's money pays for it. You will learn a lot.
Thanks for the feedback. One accountant said we should look at her space as a room rental. She uses 1/2 the part of the home, but not exclusively, which is greater than her room.
I wouldn't report any of it unless it were over $14,000 a year. ($14K is the gift limit.) Just be prepared to pay it all back if mom goes on Medicaid for nursing home expense. Without a specific kind of contract to cover in-home caregiving, Medicaid will disallow what she's paying you because you're family. (Not fair, but that's how it is.)
Mom gives me $1,000 a month for "her care." At the end of each year, I total up my utilities and property taxes, and show a calculation that 'spends' part of that $12,000 to pay her fair share. I intend to show it to Medicaid if and when she exhausts her savings. I am capable and prepared to pay back anything they disallow. If I die, I've left money to my cousin in my will to do that for me.
I use mom's charge card for everything associated with mom including treating us occasionally for pizza or Chinese. Save all receipts. If she has to apply to Medicaid, they look back five years to make sure she only spent money on herself and her own care. It's my understanding they question EVERYTHING $500 and over. (Not sure about that...)
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Mom gives me $1,000 a month for "her care." At the end of each year, I total up my utilities and property taxes, and show a calculation that 'spends' part of that $12,000 to pay her fair share. I intend to show it to Medicaid if and when she exhausts her savings. I am capable and prepared to pay back anything they disallow. If I die, I've left money to my cousin in my will to do that for me.
I use mom's charge card for everything associated with mom including treating us occasionally for pizza or Chinese. Save all receipts. If she has to apply to Medicaid, they look back five years to make sure she only spent money on herself and her own care. It's my understanding they question EVERYTHING $500 and over. (Not sure about that...)