When do family caregivers need to file with IRS? Chronically ill Alzheimer's aunt. Her house sold, but we only get her $1700 monthly income.

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Nodaysoff Asked July 2021

When do family caregivers need to file with IRS? Chronically ill Alzheimer's aunt. Her house sold, but we only get her $1700 monthly income.

Three years later, any travel we did, she came along. Thus "No Days Off" also means no travel to see grandkids in Florida and Hawaii. We would like to double our income now that it is financially possible.
The aunt with POA pays the rent and we all want to do it right with regard to IRS. The extra hours of getting her bathed and fed are worse the last year (along with more aggressive resistance to care). I work full time at 66 and my wife is a disabled retired RN. She is unable to drive on highways and we live rural.

Alzheimer's & Dementia Family Caregiver Financial Planning

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score 0 · Answer 1

Was the rent of $1,700 documented in terms of a lease agreement?

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score 1 · Answer 2

I have read your profile. You need to see an elder law attorney to prepare caregiver agreements and make a plan. How are aunt's care needs going to be met going forward? You should have been an employee for the past three years. Get the POA to set up everything necessary to become an employer.

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score 0 · Answer 3

I agree that a consult with an accountant or elder law attorney would be an excellent investment, especially since her care needs will only ramp up, not down. What is the plan for overnight care? Eventually the cost of 24/7 care exceeds that of a good facility. If she ever requires Medicaid, her finances will be scrutinized on the app, and possibly back 5 years from application date (the "look back" period is different from state to state).

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score 1 · Answer 4

I so hope you all have been keeping records. Who is payee to Aunt SS, the Aunt with POA? Because there are rules that a payee has to follow. The payee has to report to SS how Aunts SS is being used.

I hope you have been claiming that 1700 a month on your income taxes. I think you need to talk to a CPA versed in IRS and State taxes. I also think its time to place Aunt in Longterm care. Her proceeds from her house could be used for her care.

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When do family caregivers need to file with IRS? Chronically ill Alzheimer's aunt. Her house sold, but we only get her $1700 monthly income.

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