She is not a relative to me, and I do not claim her as a dependent. She only pays for her meds and a few personal care items. I basically provide all her room and board. I take of getting her to all appointments. I will also deduct mileage. I plan to deduct the her living area (and associated expenses) as home business expense. Can I deduct anything for her meals, (we don't keep a separate tally on her food)? I will be issued a 1099-M as a contracted caregiver.
1. If all of the $2k is wages for care, it's reported as employment income.
2 If any of the $2k is for rent, it's reported as rental income, in a private home.
3. There may be issues of using your home, or part of it, as a business, and if so, there may be business tax deductions. The percentage of use as a business needs to be calculated since the entire home isn't used as a business.
4. I'm a little bit concerned about being considered as a contracted caregiver in a home that you presumably own. This is an issue on which I think I'd consult a tax accountant.