How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

I have a SEVERELY disabled 27 year old daughter who lives at

This answer was rated:

I have a SEVERELY disabled 27 year old daughter who lives at home with me. Single father. I pay a caregiver $1,125 per seek. 24/7 365 days a year. Can I deduct caregiver's wages from my federal income taxes? She needs assistance with ALL daily activities. Eating, bathing, toileting, dressing, wheelchair, ect. She is a danger to herself if left alone.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

I'm sorry to hear about your daughter's condition

Megan C :

Nursing care received at home are considered medical expenses and are fully deductible

Customer:

is not a nurse. A lady with a kind heart and very competent

Megan C :

The caregiver expenses must meet two criteria. One is that the care must be prescribed by a medical provider - for example, the doctor orders that she must have a caregiver (does not have to be a nurse)

Megan C :

and the individual must be chronically ill, which based on your question she is

Megan C :

And this would be deductible as a medical expense, which is subject to the 7.5% floor of AGI

Customer:

does the lady have to claim wages on her taxes?

Megan C :

Yes, she does

Megan C :

Any time you receive money for providing a service it is taxable.

Customer:

7.5 of adjusted gross income....my income? and I'm retired and 25000 is anual income. so can only deduct 7.5 % of 25000. is that correct?

Megan C :

You can deduct any expense that is above 7.5% of your income

Customer:

ok

Customer:

am I responsibe for checking the ladies SS#? do I 1099 her?

Megan C :

Yes, and technically you should be withholding taxes and issuing her a W-2. It's pretty complex, but you can get a local professional to do it for you for a couple hundred bucks

Customer:

ok

Customer:

thats it for me

Megan C :

okay great. Please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today.

Customer:

ok

Megan C :

Thanks so much!

Megan C and other Tax Specialists are ready to help you