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Can anyone tell me whether private-duty "nurse's aides"
hired to care for a resident of a nursing home are
"household employees" that have to be reported on the tax
return of the nursing home resident?
QUESTION: Can anyone tell me whether private-duty "nurse's aides"
hired to care for a resident of a nursing home are
"household employees" that have to be reported on the tax
return of the nursing home resident?
When private-duty aides are hired to care for a patient in
an acute-care hospital, they are not considered "employees"
of the patient.
But what about when the patient is transferred to a nursing
home for long-term care and continues to use the same
private-duty aides. Do they then become "household
employees"?
Other facts: (1) employment of the aides is "temporary,"
or contingent, ending with the death of the nursing-home
resident or the depletion of funds to pay the workers; (2)
the nursing-home administration reserves the right to
supervise private-duty staff and to "bar" any private-duty
staff who commit serious infractions of the nursing-home
rules.
Can these private aides be considered "contract workers" or
are they "household employees" reportable on the nursing
home resident's tax return?
Would appreciate any advice.
ANSWER: Can anyone tell me whether private-duty "nurse's aides"
>hired to care for a resident of a nursing home are
>"household employees" that have to be reported on the tax
>return of the nursing home resident?
If you are hired by the nursing home, you are an employee of the nursing
home. If you were hired by the resident, you are an employee of the
resident. If you are paid wages, you are an employee. If you are a
private contractor, in business for yourself, you would report your income
and expense on Schedule "C", of your tax return, as a "Sole Proprietor".
indicating "Profit or Loss from Small Business".
>When private-duty aides are hired to care for a patient in
>an acute-care hospital, they are not considered "employees"
>of the patient.
You are employed by whoever pays your fees or you are self employed.
>But what about when the patient is transferred to a nursing
>home for long-term care and continues to use the same
>private-duty aides. Do they then become "household
>employees"?
Who pays the bills? Is the relationship the same in the nursing home
as it was in the private home?
>Other facts: (1) employment of the aides is "temporary,"
>or contingent, ending with the death of the nursing-home
>resident or the depletion of funds to pay the workers; (2)
>the nursing-home administration reserves the right to
>supervise private-duty staff and to "bar" any private-duty
>staff who commit serious infractions of the nursing-home
>rules.
If your employment is controlled by the nursing-home, the
likelihood is that you are their employee. Again, who pays
you?
>Can these private aides be considered "contract workers" or
>are they "household employees" reportable on the nursing
>home resident's tax return?
The payments would be deductible as a medical expense on the
nursing home resident's tax return but the responsibility of
reporting what you have been paid belongs to the entity paying you.
If your patient has his/her own quarters, your relationship is the same
as it was when you were employed in the former home, and Schedule
"H" "Household Employment Taxes" were filed in the past, the likelihood
is that the relationship and reporting requirements would not have
changed.
Get a copy of Publication 15a "Employer's Tax Guide" for an
indication of what applies in your particular case and to determine if
you are best categorized as an employee or a private contractor.
Pull it down from http://www.ustreas.gov/ You may also wish to draw
down Publication 926 "Household Employer's Tax Guide" If for some
reason you can't pull down the information, call 1-800-TAXFORM to order.
If you have a more specific question, come on back.
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