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I have a client who provides care for adults in her home under a state sanctioned program. I believe some of the payments she receives from government agencies may be exempt from reporting as income on her return. Does anyone know where I can find information relating to the exemption of payments from income? I searched several areas on the IRS website, but most info relates to child or foster care, not adults, or relates to hospitals, not in the home. Thanks everyone! |
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Are you referring to payments to foster care providers and/or difficulty of care payments? See page 33 of IRS Pub 525 link text No, I am talking about a client who is in the business of providing care to disabled adults in her home, not incedental Other Income on the 1040 - this is a Sch C business. It is similar in nature to assisted living facilities/nursing homes, but is physically in my client's house where she lives.
(12 Feb '10, 23:11)
cpaboise
I guess then the question on our end becomes what leads you to believe that some of the payments to her may be exempt from reporting as income? If we know what you think it is other than income, then maybe we can provide you with something substantial. On the other hand, if you are looking for something that does not exist, then we won't be able to find it either (grin).
(13 Feb '10, 21:36)
Pat Haggerty
The payments are paid to her by the state agency. I am under the impression that the state agency receives their money from Social Security or a similar agency. It is similar in character to difficulty of care payments, but she does not take care of foster persons, as defined in pub 17.
(23 Feb '10, 21:24)
cpaboise
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But as well, if she does not include the $$ in her income, then would not the expenses for that income be disallowed as well? I believe all income would be part of her gross income with the allowable deductions since she is not a public facility or non profit. But don't have any clients such as this, so just my opinion. |
