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Does my friend have to file income taxes? Every bit of her income goes for her care at an assisted living & co-pays on her medication!
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A&A are exempt from SS as an countable income for midi-cal benefits and is not a countable income and can be dismissed if broken down by the VA by a letter re-guest.if SS needs one on record as most due.
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Your caregiver is a worker. She has her own income and Income Tax Return.
Your Aid and Attendance payments are yours, and you should pay her out of any and all income that you have, including your Aid and Attendance, whatever that may be. If she receives Disability payments, there is a guideline as to how much money she can earn in a month/year. She should call Social Security to find out how much she is allowed to earn while receiving Disability.
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If my caregiver is on Disability, will she disqualify herself with these payments from my Aid and Attendance payments?
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I'm going to have to ( reluctantly) disagree with Ralph on the Medical Deduction for your Dad's needs. L Merchant: Only medical and medically-related expenses can be entered on Line 1 of Schedule A.... this includes, dental expenses, insurance premiums, gasoline to and from these med/dent offices and all med-related expenses..medical driving. precriptions, non-prescriptions, etc. Nothing else. No haircuts, no manicures, no rides to the park etc. No food. sorry.
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LMerchant: Your Dad should file his annual Income Tax Return, just as he always does, this time using your address as his address. On the Return, there is a line for Social Security Income. Enter it and carry over the txable amount in the extreme right hand column. Computer software will tell you how much to carry over. If you don't use the software for tax filing, then you will have to compute it using the book or get some help on this. Remember this is not your money. Again, not your money. Even though you spend it on him...his needs, meds, haircuts, food, snacks, recreation etc. it is still his money.
On a different Schedule, you will find Care for The Elderly........dependent care/.
This is where you will get back some of your money spend on his care....including Housing, utilities, insurance and more.
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The VA's Aid and Attendance Pension is NOT counted as "taxable" income.
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I am about to move my Dad from a nursing home & care for him in my home. His social security will be our only source of income. Will I have to pay taxes on that money?
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I am about to care for my elderly father in my home & quit my job. He receives social security benefits which will support us. do I have to pay taxes on that money?
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thank you-
i didnt know that-
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krnhersh:
Expenses were paid for services received by your father. If you are seeking to deduct these expenses for income tax purposes they should be deducted on his return as a medical expense.
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Yes as long as you do not have to fill out a return............otherwise I do not know.
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The VA is not going to send out anything regarding this income as it is not taxable income.
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Ralph, you "misspoke" and I misspelled. Sorry.

No 1099, no reporting.
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We have two conflicting opnions about Aid and Attendance benfits for VA recipients.
Have you received, or has the recipient received a 1099 on this benefit?
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CORRECTION!
I left out the word "not" above.
So to be clear..
All VA non-service connected pensions (Basic, Homebound, and Aid and Attendance) are NOT deemed as income for federal and state income tax purposes.
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The VA's Aid and Attendance Pension is "tax-free" income and is not included in returns. This is national and not state dependent.
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if i paid for my dads private nurses and aides-
it was out of a account with both my dad and my name on the account-
should this be included on his tax papers? or mine?
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All VA non-service connected pensions (Basic, Homebound, and Aid and Attendance) are deemed as income for federal and state income tax purposes.
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The Aid and Attendance Benefit for our Veterans are received tax-free to the recipient. Veterans are elgibile if they served in WWI, WWII, Korea and Vietnam. For those wartime veterans who entered active duty starting September 8, 1980, the eligibilty requirements are a bit stricter. The Veteran must have served at least 24 months or the full period for which called or ordered to active duty. those in service from August 2, 1990 to present are also eligible for this benefit.

Those hoping to qualify can seek out free help through a regional, state or county-level Veterans office or go to www.va.gov. Then click on locations and then click on State Veterans Affairs orrifces or Regional Benefit Offices. You can also email the Department of Veterans Affairs at www.iris.va.gov or call them at
1-877-294-6380.
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Aid and Attendance are income based. If you have enough income to pay taxes you probably will not qualify for Aid and Attendance.
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Please check with a CPA about this, as there are different rules in different states, and each circumstance is slightly different. You should have expert financial advice before deciding this.
Good luck - I hope so.
Carol
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