Elder Law Answers
How Will Medicaid Treat My Mother's Repayment of a Debt to Me?
Many years ago my mother borrowed money from me – a couple times. She kept notes of what she borrowed. I also helped...
Read moreCan I Count the Money My Parents Pay Me for Acting as My Mother’s Caregiver as a Gift?
- September 30th, 2020
Q
I am an informal caregiver for my mom. Since my dad writes me a check from their joint account, can I count the first $30,000 ($15,000 per parent) received as a gift instead of W2 income? In addition, my mom will be reimbursed through long-term care insurance for the money I receive from my parents.
A
There is the strict reading of the law and what you can “get away with.” You are being paid for a service you are providing, which is the essence of employment. You must report earned income on your tax return. It is hard to argue it is a gift. This is also consistent with seeking reimbursement from the long-term care insurance company. That said, it’s doubtful that anyone is going to audit you or your parents and notice the discrepancy.