10/10/2026
Caring for a family member? Getting paid for it? The IRS has special tax rules you need to know.
💡 Key points:
Some caregivers are considered employees — even when caring for relatives.
Some payments must be reported on a W‑2, even if no employment taxes apply.
If you run a caregiving business, payments may be subject to self‑employment tax.
Payments from Medicaid waiver programs, insurance companies, or state agencies can create tax obligations.
If you’re paying a family caregiver — or you ARE one — JBI Tax Service can help you file correctly and avoid penalties.
I break down exactly what the IRS says about family caregiver taxes — full blog now live on my website - visit www.jbitaxservice.com for more info!