Elder Law Answers
Will Medicaid Come After Money We Use to Fix Mom's Condo?
Our mother has some money that we would like to use to fix up her condo with new carpeting and appliances. My siblings and...
Read moreDoes the Money I'm Paid as Mom's Caregiver Count as a Gift?
- November 22nd, 2023
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.