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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I moved my elderly mom from assisted living to my home. I quit

Customer Question

I moved my elderly mom from assisted living to my home. I quit my school teaching job so that I can care for her 24/7. I have a DPOA to take care of mom and for 2013, I am taking $600/week from her checking account for living expenses and for making some small improvements to my home so that I can care for her. I have an 8 year old daughter and I take turns claiming her as a dependent with her father every other year. I will be claiming her as a dependent for 2013. This year for 2012, I am filing as "single" and for 2013 I am planning on filing "head of household". What records do I need to start keeping and what will I be showing for income for 2013?
Submitted: 4 years ago.
Category: Tax
Expert:  Megan C replied 4 years ago.
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question, and thanks for using You are caring for your mother, and collecting $600 a week for doing so, if I understand you correctly.

Your income will be whatever was paid to you from your mother's account. Your expenses will be anything that you incur, from that money, to care for your mother. The improvements to your home, if minor, can be expensed. For example, if you spent $300 adding a rail in your bathroom and that's the only thing you did you could expense that $300. However, if you did a complete overhaul of your bathroom and it cost $10,000 you wouldn't expense that - you would depreciate it over the useful life of your home.

You will place this income on Schedule C. You will pay both self employment and income taxes on this money. The self employment taxes will help you qualify for social security and Medicare later in life. You can review schedule C, HERE.

As for records, you can keep copies of the checks that are paid to you from your mother. For expenses, keep receipts and bank statements.

Please let me know if any of this is unclear. Thanks for using and have a happy, and safe, New Years.

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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

Expert:  Megan C replied 4 years ago.
Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. Also if you ever need anything else in the future please Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer
Expert:  Megan C replied 4 years ago.