I am living with my mother as a caregiver, she is starting to gift me money every month do I pay taxes on that?

What are your mother's finances like? Is there enough money or is there a chance she will need to go on Medicaid?

You need a caregiver agreement otherwise the money mom is paying you will be considered a gift by Medicaid. Should mom ever need Medicaid she will be penalized dollar for dollar the money she gave you. That could be five years worth where she or someone would have to pay for care out of pocket until penalty is repaid. At $8,000.00 a month, or more, that is a hefty sum to come up with out of pocket.

While the IRS allows gifting or $14,000.00 a year to anyone, tax free, the rule does not apply per Medicaid rules. The elderly need to hang onto their money to pay for facility living should they ever need it.

See an elder law attorney to draft an agreement asap to protect mom's future care needs.

If she is living at indy living I doubt she needs Medicaid. Parents may gift their children a certain amount each year. Ask your accountant what to do. And ask about a family trust for you and your mother. If you are living with her as her caregiver and you are not paying into social security, then you may well need all of that money to take care of yourself later on.

You get yourself to a lawyer asap. You have a " caregiver contract" drawn up. You pay taxes on the money.

Doing it any other way will disqualify your mother from receiving Medicaid. There is a 5 year look back that they do; gifts will trigger a penalty and ineligibility.