She cannot live alone after contracting a viral encephalitis. My father has been placed in a nursing home in Alabama. I stay with her in Alabama for about a week then she goes back to Georgia with me for about 3 weeks. My sister will watch her for 1 week when she can schedule family medical leave and fly home to Alabama. My brother in Alabama handles the upkeep of their home, yard, and finances. We had an attorney draw up a contract for them to pay us. I know a 1099 is required, but I am concerned about providing the care in 2 different states.
A 1099 would be required if you're being treated as an independent contractor, with no deductions taken by your brother who I assume would be handling payment. If he decides to be the employer, then he would take the deductions and file them, but you'd still be faced with filing and including this information on both your federal and state return, IF the amount paid pushes you to having tax liability.
If you're retired, have nominal income, the caregiving amount may not raise your income to the level of having tax liability. This is something you should probably work out now - do a test filing by roughing out the income and determine at what level you would develop the obligation to file and pay taxes on the income.
Depending on the amount paid and anticipated to be paid, as an independent contractor, you'd likely have to file quarterly with the feds as well. But again, it depends on what tax bracket you're in now and which one you'll be in once paid for the caregiving.
State quarterly filings would depend on the states - I wouldn't want to hazard a guess as to what Georgia or Alabama might require.
I would start by researching the IRS website and either ordering or downloading publications on self employment and filing obligations, then do the same for both states.
If mom wasn't competent to do these things with her sister, then you as her daughter will need to get an atty and you go to court to get guardianship over your mom. Being a guardian, means guardian makes decisions on the behalf of your mom.
By caregiving you do not "earn" placement in a will. Mom can leave her estate totally to a grankid that she has never ever met if she wanted to and leave nothing to you. Being a caregiver does not make you necessarily the heir of her estate unless mom puts it into her will or her codicil.
Please take a breath and realize this, the terms of a will or it's codicil matter only if they die and actually have assets at death. If mom ends up needing a higher level of care so that she goes into a NH, she is going to have to pay for it. She could end up selling the house to pay for her care. If she's poor, she can go onto medicaid and keep owning the house - if you & family is willing to pay all costs on the house - but once she dies, Medicaid will attempt to recovery all the $$ paid for her care. Mom's house will have a lien or claim on it by Medicaid (via MERP) unless each heir can do an exemption to MERP or the executor open probate and can work thorough the probate process to possibly have the claim lifted.
Before this goes on & on, with you getting more upset, I'd suggest that someone else in the family speak with your aunt as to what she is thinking is going to be moms future care plan. It could be that aunt is looking to have her sister move into a skilled nursing facility as she has a lot of health issues and could need skilled nursing care and beyond the caregiving you do now.