I am trying to help an elderly friend of mine find out if the way she has been paying for her 24 hour, live in home care, is legal.
Each week she simply gives the caregiver a check made out to CASH in the amount of $700 and does nothing more....
Is it legal to do this without taking out federal taxes, ss taxes, state taxes etc???
I realize the caregiver herself is responsible for her own IRS issues should they arise, but will the elderly woman have any IRS issues by doing this?
She has become very worried about this and I would like to ease her mind if possible. She is over 80 years old and recently widowed.
BTW - She is a Michigan resident.
Any advice would be greatly appreciated.
Hi Shelly,
I'm no expert, but I sure remember that Zoe Baird..."nanny scandal" some years ago.... Which makes me think that 'legally' you are supposed to have some sort of a contract,and take out taxes etc. In reality- who actually does this? Maybe a good question for your local legal advisor from the Area Agency on Aging. THey often have staff who can help answer questions like that and also give suggestions about how to handle it.
Maybe someone else has some good advice! Good luck!
Hi Shelly,
Actuality is that if your friend is claiming this on any taxes, she definitely should be making out the check in the persons name. It is the responsibility of the caregiver to report what she makes and take care of the taxes. I had to admit my parents into a nursing home for awhile and the avg. cost of each was 7,500.00 per mo. As a private caregiver the maximime chg. is no less than 7.50 per hr. which would cost her 1260.00 per wk. At the amount you stated she is only paying this caregiver is only charging her approximately 4.17 per hr. Your friend is probably trying to stay in her own home and believe me there are no agencies out there that does 24 hr. care without whopping cost. I've been there with my own parents and gave up a lot to take care of them myself until I couldn't do it anymore. Best of luck to you and your friend......
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