Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
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My wife and I are filing bankruptcy in Colorado. She is considered an independent contractor with a local agency and takes care of mentally disabled person in our home.( she has a regular job and does this to help out the disabled) she receives money for the needs of that person and reported 2500 dollars on last years 1099-c. since that money is to take care of the disabled person do we report or calculate that in our means test. it about 2000 a month that is not taxed at all because its for the disabled.
Response: Yes, she has to report the income. All income must be reported in the means test unless the income is for social security payments.