Paying a caregiver, explained without the jargon
Short, practical guides to hiring help for an aging parent the right way — who counts as a household employer, the taxes and year-end forms, and how clean records protect Medicaid eligibility. General information, not tax advice.
Who we help
Senior caregiver
Paying an in-home aide for an aging parent often makes your family a household employer. How the rules generally work, and how to pay a caregiver on the books — estimates only; confirm with your tax advisor.
Read the guideFamily member
Paying a relative to care for an aging parent can still be household employment — but some family wages are treated specially. The general picture, hedged; confirm your case with a tax advisor.
Read the guideLive-in caregiver
A live-in aide you hire directly is generally still a household employee. How taxes, hours, and room-and-board usually work — general info; confirm with a tax advisor or employment attorney.
Read the guideHousekeeper
A housekeeper you hire and pay directly is usually a household employee, not a 1099 contractor. When taxes apply and how to pay on the books — general info; confirm with a tax advisor.
Read the guideOther household help
Hire someone directly to work in or around a home and the household-employment rules usually apply, whatever the job title. The general picture — confirm your case with a tax advisor.
Read the guideGetting started
Am I a household employer?
Hiring an in-home caregiver for an aging parent often makes your family a household employer. A plain-English test, the wage threshold, and the year-end forms — general info, not tax advice; confirm with a tax advisor.
Read the guideWhat does my state require?
Federal household-employer rules are only the baseline — states add their own unemployment, withholding, and reporting requirements that vary widely. What states commonly add and how to find yours. Confirm with your state agency or a tax advisor.
Read the guideTaxes & forms
Can I deduct in-home caregiver costs?
Paying for an aging parent's in-home care may be deductible as a medical expense — if the care is medically necessary, the person qualifies as your dependent, and you itemize. The general rules, hedged; confirm with a tax advisor.
Read the guideHow to file Schedule H and a caregiver's W-2
How a household employer gets an EIN, files Schedule H with their Form 1040, and gives the caregiver a W-2 at year-end. The general flow, hedged — confirm the specifics with a tax advisor.
Read the guideWhat happens if caregiver taxes go unpaid?
Worried about unpaid or unfiled household-employment taxes? The general picture — back taxes, interest, possible penalties — without scare figures, and why it's usually fixable going forward. Confirm with a tax advisor.
Read the guideSee where you stand — free, in about two minutes.
Start free, track what you pay, and know exactly when household-employer taxes kick in.
Free accountNo credit card50-state tax estimates