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How much can my parent "gift" me per year to help take care of her. She has dementia and macular degeneration. I have POA, and am an only child. I pay all her bills, take her to doctors, etc. If she pays me to take care of her do I list it as income on my income taxes? Will it affect my social security. Thanks - Linda
Optional Information: State/Country of Question: Florida Already Tried: I am just finding out that a parent can "gift" money to have their adult child take care of them. I want to make sure that this is correct, and find out how much can they gift per month and how I should handle that on my income taxes.
If you have a POA, you do not need your parent to "gift" you anything. You can just use the POA to pay her debts and expenses directly. Just send a copy of the POA to the bank and get access to her accounts. So long as the expenses are withdrawn for you parent's need, you are fine. In that case those monies do not go on your tax return, but you pay them through your parent's taxes (which are most likely taxed at a lower rate then yours). Sincerely, Dimitry Alexander Kaplun, Esq.
Thanks for your response - I am doing all just as you said.
But my question is this: In addiiton to taking car of all her bills and needs, can I be paid something from her estate each month for taking care of her? If yes, is this a gift, a salary?
You can--from what I reviewed, the annual "gifting" limit from a parent to a child is $13,000 in Florida. Sincerely, Dimitry Alexander Kaplun, Esq.
Experience: JA Mentor, Licensed in PA & NJ, specialize in business/contract disputes, estate creation & admin