Thursday, July 30, 2009

Need advice as paid caregiver, self employed?

My husband %26amp; I live with his father. Hubby receives CPP Disability and I am paid as caregiver for Dad. How do I file taxes for this position? What legitimate deductions can I claim? I am not registered as a business, the position is a contract position, set up by Dad's lawyer and his Powers of Attorney. I receive a set amount twice a month. I shop, get Meds at Pharmacy, take him to appointments, clean, laundry etc., basically run his home %26amp; care for his personal needs.

Need advice as paid caregiver, self employed?
You complete the Medical Expenses (Line 330 I believe). As a non-refundable tax credit, its more advantageous for the lower income spouse to claim. As for eligible expenses, they include hospital room, payments to medical practitioners (Dr, nurse, dentist), private health care plans, prescriptions, amounts paid to attendent care.





The Caregiver Amount (Line 315?) may be used but I think you use that depending on the level of income the dependent reports on his/her T1.





Either way, you should speak to an accountant who has experience with this stuff. You don't want to make all these claims, then have the CRA all over you.
Reply:Just fill in a tax return including your income in the proper lines. You do not need to be registered as a business. If you're not an employee of your father in law or his lawyer, then I believe you would be considered self-employed. I'm self employed and can deduct any legitimate expenses such as gas; a portion of the costs for my vehicle such as oil changes and purchase pricen (keep a mileage chart though to prove your usage for business purposes); the cost of laundry soap cleaning supplies etc. Hope that helps some.

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