are respite care payments taxable
The person is to be admitted as a respite resident, not a daily visitor, for a limited time period (30-day maximum) as specified in the contract and provided care, services and accommodations as any resident is entitled to receive according to law and rule. My sibling cares for my Mom daily - there are some hours she gets to herself, but mostly she requires constant supervision, got to stay one step ahead of her mentally because once she gets on a tear, it's hard to turn her around, just saying that it is mentally and emotionally challenging, and leaves one tired. Back to search results. I received a 1099-MISC form from a charity which provided a total of $940 as reimbursement for respite care services for my special needs children so my wife and I could have a break. Apparently this type of grant money is taxable, which is annoying but whatever. No, don't believe there is. 2,000 is a lot of cost as well for a five hour drive and maybe you could avoid the loss wages if you used vacation time to help care for your mother, therefore no loss in wage. Don't know how you travel and such, but maybe you can re-evaluate how you go about that two weeks per year. Respite Care Grant from Charitable Organization - Taxable? Self-Employment Tax? I received a 1099-MISC form from a charity which provided a total of $940 as reimbursement for respite care services for my special needs children so my wife and I could have a break. Apparently this type of grant money is taxable, which is annoying but whatever. Subsequent respite care stays by the same resident must also be established by separate contracts and all the requirements of the respite rule would apply, i.e., admission, discharge dates, current FL-2, short-term assessment, verification of orders if not signed and dated within seven days prior to admission, etc. for each separate respite stay ... Respite basically means giving you a break from your caring responsibilities. You will be assessed for entitlement to respite, and you should then be given direct payments so you can arrange the respite care that best meets your needs. You'll need to keep records of how the money is spent. If you use direct payments to pay a care worker, you're taking on the legal role of an employer. If the person with dementia is a dependent under the tax rules, you might be able to use your own workplace flexible spending account (FSA). A flexible spending account allows payment for out-of-pocket medical expenses and dependent care expenses with pretax dollars, for a potential savings of about 20 to 30 percent. See IRS Publication 503: Child and Dependent Care Expenses for more information. TIP: If you pay someone to come to your home and care for the person with dementia, you may be a household employer and may have to withhold and pay Social Security and Medicare tax and pay federal unemployment tax. As a caregiver, you likely pay for some care costs out-of-pocket. Because of this, you may qualify for tax benefits from the Internal Revenue Service (IRS). Tax rules are complex and can change. Be sure to get advice from your tax adviser or accountant before filing your returns.
Yes, this type of grant money is taxable.