Mom Care

Today TaxMama hears from Jo in West Virginia who tells us. “I took care of my mother after she was involved in a car wreck. Her auto insurance paid me for this. They have sent me a 1099-MISC form. Do I have to file this with my income tax return?”

Dear Jo,

I hope you’re mother is better.

Well your mom was certainly lucky you were there, able to take the time to care for her.

Most family members would have to do this for nothing. In fact, how did you get paid? I couldn’t get paid for my time taking care of my husband after either of his accidents. Your mom must have had a great attorney.

Yes, that’s income. In fact, it’s self-employment income since you got a Form 1099-MISC. Which means you report it on a Schedule C and can deduct any expenses you incurred while taking care of Mom. http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

But you will also have to pay self-employment taxes on Schedule SE.
http://www.irs.gov/pub/irs-pdf/f1040sse.pdf

So, yes, you do have to report the income. Sorry.

And remember, you can find answers to all kinds of questions about 1099s and other tax issues, free. Where? Where else? At TaxMama.com

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