PFRDA

Can a 42 year old son become the caregiver for his aging parents?

Is it legal for the parents to pay him for his care and would he pay self employment taxes on his income taxes? If he did pay the self employment taxes I assume it would go towards his social security and medicare in the future.

Public Comments

1. Not sure what the laws are in other places, but in California it IS legal to be a caregiver. In fact, I have a friend who got checked out by the State (criminal background check, finger prints, the whole 9 yards). Once she's approved, the State is going to pay her (not sure how much) to be caregivers to her elderly parents. I'm sure those wages will go as a "self employment" category on her taxes. Who better to take care of your parents, but YOU? And IF you can get paid to do so, that's even better. (even though I'm sure you'd do it, getting paid or not.)
2. You can usually become a caregiver without having to have a self-employed tax status. You can usually get some relief on your taxes if you're a caregiver. In this situation I would class the money received from parents as a gift, rather than a salary. And, unless it's over 40k, would be tax exempt in most situations.