My father-in-law's current financial situation does not cover in-home care while my husband and I are working. We have come to the conclusion that I will need to quit my job to care for him full time. I would be a paid caregiver simply because we cannot do without my income. I have found I can provide his care per conservatorship guidelines. What I don't know is how this will affect the income tax on the portion I'm paid. As a conservator I'm basically hiring myself. Does that make me a self-employed person? How to I file taxes for his payments to me and how is my income viewed? Self-employed, contract labor or staight employment by my father-in-law's conservatorship account? This is all confusing to me! Thanks!
Check out "companion sitter" classification - if he meets qualifications - Each year you as conservator would do a 1099 to yourself as companion sitter (deductible to conservatorship with no tax withheld) and file on Schedule C - self employed, paying the taxes personally. Check with your tax guy for best.