My wife's dad pays her for caregiving from his VA pension. How do we claim this income on our tax return?

1099 is part you fill out. for independant contractor You keep your own record you pay in your own soc sec taxes.think yhe limit is still 600.00 after that they have to report and pay in soc sec

Becky: That's what I said- 1099 should have been received.

Lamalover
I think this year is 600.00 still anymore paid to ondepemdant contractor suspose to file income tax 1099 form independant contractor files.
gmore -typeo- for more than 6 months support.
Check IRS Dependant exemption.
Other option Bill the POA. Shelter room and board. personal Escort and mileage for Dr. If not Health care surrogate.
If payee does not pay bills for her care then that is neglect.
Elder abuse to collect her money and not provide for shelter and food and health care personal needs. A landlord can be payee.
Soc Sec does not recognize Power of Attorney if she is unable to attend her own bills etc. She would have a soc sec.payee.
If funds collected and not used on her that is also extortion and embezelment elder or disabled aka abuse of a vunerable person.
Look up law. Go to Elder Affairs she is with you so you can take her.
If she doesnt have medicaid take her and apply for her while there she can appoint you as dfc authorized represenative.Again this will allow you to access her records and comply w hipa law.If you prepare meals for her do them seperately have her own dishes.she may then qualify for foodstamps if her income is low enough. HEAP winter heating assistance.
These maybe resources you will have to use to help you care for her.
It is a can of worms.
But if you are dcf rep which makes you dcf payee if she gets foodstamps. And allows you to be in her medical care.on original write legiable copy or electronic digital media copy shall serve as origional document
Retain copy of dcf rep form after worker witness and have stamped receive to prove submitted take and copy this have noterized as a true copy. Make copy noterized one put others up use last copy if have to present again. To protect origionals.
Good luck your btwn rock and can of worms.
Bless family for in the end noone wants to be alone.

Becky: I told the OP about the 1099 form plus the possible fraudulent activity as well as asking if the OP filed for an extension. The OP hasn't come back on this thread. What do you mean when you said "gmore?" Not making sense.

Dependant would be support gmore than half the year. An his income is counted in IRS form he should have received. He paid for assistance care.
What he paid for would be to an independant contractor. A 1099. You would claim what he paid for you for services he paid you for. That would not be you supporting him.
Dependant care is form you need ( for children or disabled, elder dependant )

Really to pursue this there is a larger question of what his total income is, not counting VA, and then his total Medical Expenses

This may well be fraudulent activity on the POA'S part because they stepped in and removed his monies.

adragton: What are you doing with the 1099 form that the elder received?

adragton: Have you filed for an extension? I hope so because the last day to file was 4/18/16. That money belongs to the elder, transferred or not.

If it comes from his pension directly to you, then he is paying you for care, and it would be a deduction from his income--if it's more than the standard deduction. But you would have to pay taxes on it yourself, since it's effectively your income. I assume you'd have to list it under Other Income. Now, my advice is worth exactly what you've paid for it, so call the IRS and ask: 8AM-8PM M-F and be prepared to wait more than 1/2 hour!

Send the parent to the person who has all the money. Done.

The VA pension is a tax free benefit, to claim caregiver costs against other income, there will need to be a caregiver contract/agreement. Or private pay via a home health company. If it is a private person with a caregiver agreement specific duties must be noted, and it would be best to pay thru some type of book keeper, issue 1099.

I agree with Kathy about contacting Elder Abuse about the money transfers.

Again, Social Security does not recognize ANY powers of attorneys.

Ferris, good comment. My nephew gets an annuity from my sisters government pension. Mom is payee and can no longer handle his money. I have his POA but I need a conservatorship (not sure of spelling) to transferto me. In my opinion, family member with POA stealing. Ur FIL has income. As caregiver you should have POA. Guardianship will override POA.

Yes contact soc sec . Soc Sec will not talk to you if you not his payee. He needs to talk you can take him there. And if he gives permission sit in with interview
If no money given pensioner this is same as stated above. VA pension check has not to do with soc sec.

You may need to contact Elder Affairs re Elder Abuse. check is used for pensioner then that is fraud and embezelment abuse of a vunerable person by poa.
Note If parent lives with you apply for Longterm care Homebased Health Care through DCF.
If collects VA Pension contact the VA

The first thing I would do is contact Social Security and let them know your relative is doing this "auto transfer". That is a federal offense if your parents have not named them "Representative Payee", as Social Security does not recognize a POA. You do not say if your parents have dementia, so I cannot comment about what they can do. Please tell us.

Cost of care is NO free ride and is very expensive and we don't know if that relative has been caring for your parent. Turbo-tax has information regarding claiming a parent as a dependent

yes if you can claim your parent on your taxes. Call IRS to confirm. I would notify Elder Abuse in your state and let them investigate the money transfers. I have moved money from one account to the another bank. When someone was not authorized to make withdrawals did so. But the money belongs to the person still.