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The money she pays is for her portion of housing, food, utilities, and sundries etc.

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This is a question for your CPA.
BUT
First of all, be certain you have a well written care contract and stipulate that it is a SHARED LIVNG EXPENSES contract in which Mom pays this amount toward rental/mortgage and that amount for food and this amount for transportation and that amount for utilities. If this is done it is normally not taxable.
However, if she is PAYING FOR CARE it may be taxable. Or paying rental.

Much depends on the wording and this is why, for the sake of taxes AND her protection should she ever be in a position to need 5 year Medicaid lookback, this must be done right.

That means an attorney. That means a contract. And that means finding out the tax rules for federal and your state.
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I agree with AlvaDeer. I immediately thought "consult your tax attorney or tax preparer. In other words, if someone here says "Yes," what would you do?

It is important to realize that everyone here generally replies from personal experience - and situations can be (usually are) individual, especially, perhaps, when it involves taxes, finances, etc.

In addition to contacting your tax preparer, do some preliminary research.
See below ... it is a start. Googling, I found:

Family Caregivers and Self-Employment Tax:

https://www.irs.gov/businesses/small-businesses-self-employed/family-caregivers-and-self-employment-tax

In part:

Special rules apply to workers who perform in-home services for elderly or disabled individuals (caregivers). Caregivers are typically employees of the individuals for whom they provide services because they work in the homes of the elderly or disabled individuals and these individuals have the right to tell the caregivers what needs to be done.

Family members may or may not provide these services. If the caregiver employee is a family member, the employer may not owe employment taxes even though the employer needs to report the caregiver's compensation on a Form W-2. See Table 1, “Do You Need To Pay Employment Taxes” on page 5 of Publication 926, Household Employer's Tax Guide for more information.

However, in some cases the caregivers are not employees. In such cases, the caregiver must still report the compensation as income of his or her Form 1040 or 1040-SR and may be required to pay self-employment tax depending on the facts and circumstances.

The following FAQs illustrate some fact patterns involving family member caregivers who are not employees.

And . . .

Are caregivers exempt from federal income tax?

Is Caregiver Income Taxable? As a caregiver, you may be wondering if your income is taxable. The short answer is yes. Depending on your specific situation, you may have to pay both federal income taxes as well as unemployment insurance taxes.

Can you claim elderly parent on taxes?

To qualify as a dependent, Your parent must not have earned or received more than the gross income test limit for the tax year. This amount is determined by the IRS and may change from year to year. The gross income limit for 2023 is $4,700 and increases to $5,050 for 2024. ... It goes on in more detail.

Gena / Touch Matters
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christinex2ri Mar 31, 2024
the gross income is for wages not Social Security or non taxable income
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MamaJani: This is a question for your CPA.
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If she claims the money she gives you on her tax return, then you need to declare it as income.

However, if you think your Mom might be applying for Medicaid in the next 5 years, you should be documenting all the money your Mom is giving to you and what it is for. If she attempts to go on Medicaid or low income subsidy, they will ask you for proof of what that money was for.
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If it is just her share of costs, no, it is not income to anyone.

Be sure and let your tax preparer know what is going on with random monthly deposits, if you do them. I recommend creating a line item that states - non-taxable monies from mom for her share of costs. That way it is obvious and already answers any questions.

If New Mexico has any problems with this, you might find having mom directly pay bills and pay for groceries easier.
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If she is paying for her utilities and groceries, then you don't need to claim that. If she is paying you "rent," you probably need to claim that as income.
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If it is over 15 k then it has surpassed the gifting range and you need to claim. Speaking of gifting, if you do not have a contract and then later she needs Medicaid, then the entire amount over the past 5 years would look like gifting. She would then be assessed for a number of months you would have to pay out of pocket for her care or she will be delayed for a number of months. Seek legal advice to determine to pay taxes
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Accountants are listed under "A" in the Yellow Pages.
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Luvbug Apr 6, 2024
So is a**hole.
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