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I have a contract our lawyer drew up and I am paid for my time., weekly.
Am I required to claim this money on my taxes? If so, how do I go about filing it on my tax return?

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Yes, you pay taxes based on the income on the W-2 that your parent -as the "employer" - must issue to you for this tax year.

I'd suggest you get a jump on all this soon, and find an AARP senior outreach program that assists elders in doing their taxes. These are free but seem to take a limited # of filers. so you want to be in that group! In my moms city, the sites are coordinated by the Agency on Aging in conjunction with AARP. A couple of sites are in a mall but most are at a goodwill that does job training ( they have classrooms). Yiu need to take all of moms financials and tally up the checks (I'd take a xerox of the checks) but they should be able to get her taxes done & W-2 done. Then you use the W-2 to file your taxes. If you are old enough, you too may be able to have the site do your taxes too. You may have to pay taxes on the income but realize that you also are building your own SS income base for your own future retirement.
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You definitely pay taxes. And like igloo said, you want to get the social security credits on record, to increase your SS check when the time comes. Talk to your mom's accountant /tax man.
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If you are considered an *independent contractor* then you will probably need to pay quarterly estimated income taxes using a 1040-ES form. None of this is easy :(
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Freq. - do you think she would have an issue with the 1099 rather than mom doing a W-2? I'm kinda remembering that home health care workers or caregivers can't be considered "independent contractors" as they cannot pass the IRS checklist for what is required so therefore no 1099 but a W-2 with all that that entails for withholding, etc. Your thoughts?
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Here is something that may help. If a person is paying directly, the answers should be the same as if it is a government agency. It appears a 1099 is the way to go. Federal and state taxes have to be paid, but self-employment tax (social security) does not. That is really rather unfortunate, since I had thought maybe it would be a way to build SS credits.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Family-Caregivers-and-Self-Employment-Tax
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Well, I should add that it isn't self employment income unless you are in the business, as mentioned. Igloo's advice is good to follow. You should be able to download a W-2 and 1099 from the IRS site.
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Oh boy! Care agreements! I was told by mom's conservator that independent contractor would not fly because of Medicaid regulations and remaining eligible. I will read the bulletin and it would be interesting to know from someone in the know how Medicaid would look at this. I have been led to believe it has to be a w-2.
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W-2, of course, and 1099-MISC from what the IRS writes
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I re-read the IRS page. I am not sure about the W-2 at all. I don't think the W-2 is needed for a 1099. I have a good many of them for my mother and I've never filed a W-2. I think the 1099 stands alone. Does anyone know for sure that this is right?
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No, Jessie, you do not need to file both the 1099 and the w2. But call the IRS number to ask. Or a good accountant. At least you have something! I have tried to get sib to get thie straightened out for three years!
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They give you a 1099 for you are an independent contractor which means they do not withdraw anything for taxes and social security. You will have to pay taxes and social security on the income as a self-employed person.

I think you need to talk to a tax return CPA to clarify this.
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