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It depends on the arrangement between you and the insurance company. You need to ask you insurance company how they are treating the payments and if you will receive any tax form (1099Misc or such).
Now, paying your caregiver is a separate tax issue. If your caregiver is your household employee, you will be required to withhold some taxes if you pay her more than $1000 per quarter or $2000 per year. You will also be required to pay 1/2 of her social security and Medicare tax.
Here's IRS determination of a household employee:
You have a household employee if you hired someone to do household work and that worker is your employee. The worker is your employee if you can control not only what work is done, but how it is done. If the worker is your employee, it doesn't matter whether the work is full time or part time or that you hired the worker through an agency or from a list provided by an agency or association. It also doesn't matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job.
Household work. Household work is work done in or around your home. Some examples of workers who do household work are:
House cleaning workers,
Private nurses, and
IRS publication 926 discuss household employees in more details:
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