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    adagewoman's Avatar
    adagewoman Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 14, 2010, 04:04 PM
    Possible deduction
    Elderly person, no longer able to drive safely, pays someone $1000/mo to drive them and help out. Is this money deductible on income tax (possible medical deduction), and does the recipient need to pay income tax and social security on it? Thanks.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 16, 2010, 04:29 PM
    It probably is NOT deductible as a medical expense.

    However, that driver IS considered to be an employee, so FICA (Social Security and Medicare) taxes must be deducted and paid on that income.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Jan 16, 2010, 05:16 PM

    Are they hiring and paying the person directly, or hiring them though a agency.
    adagewoman's Avatar
    adagewoman Posts: 2, Reputation: 1
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    #4

    Jan 17, 2010, 05:44 AM

    Directly.
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