I live in California but will be going to Wisconsin in March 2009 to live with and help care for my Mother. I will be there for at least 6 months and will have her set up in an assisted living facility before I leave. What is the best way to handle the income I will receive from her? I was thinking of doing it as an independent contractor with a 1099 but it looks like the taxes will be much higher for me than if I do it as a regular employee. In order to do this for her I will have to give up a job that pays me much more than she can afford to pay me so I really need to be able to keep as much of this income as possible. She is also on a fixed income so I don't want to create a huge financial burden for her.
Thanks for any help,
Carolyn

If you go as a normal employee, your MOTHER will have to pay the employer's share of the FICA taxes, whereas you pay BOTH the employee's and employer's share when you file as an independent contractor.

Further, as an employee, you will have a much harder time claiming any expenses asscoiated with your new job. As an independent contractor, you can claim a LOT more expenses a LOT easier. Send me an email at [email protected] for details on this.

BOTTOM LINE: Going with the independent contractor option is the best way to go.

Hello there really is not that much difference except that when you work for someone, they pay matching funds ( so that is still your mother paying it)