Paying a family member to care for a parent,done carefully.
Plenty of families pay a relative — an adult child, a sibling, a niece — to care for an aging parent. That can still be household employment, but some family relationships are treated specially under the tax rules, so it's worth getting right. KinPayroll runs the payroll the same way regardless of relationship — clean records, pay stubs, and year-end forms. General information, not tax advice — confirm your situation with a tax advisor.
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Paying a relative isn't always “just helping out.”
If your parent pays a family member to provide regular care and controls how the work is done, that can still be household employment — with a few relationship-specific wrinkles.
Family caregivers can be employees too
Paying a relative doesn't automatically make it informal. If your parent controls how the work is done, a family caregiver can still be a household employee. Confirm your case with a tax advisor.
Some relationships are treated specially
Certain wages paid to certain relatives — for example, some wages between a parent and a child, or between spouses — can be handled differently from wages to an unrelated caregiver. Whether any apply depends on the exact relationship and who the employer is.
The relationship changes the answer
Because the details hinge on who the legal employer is (often the parent receiving care) and the exact family relationship, family arrangements are the ones most worth checking with a tax advisor. The calculator shows the general picture, not your specific exemptions.
On the books still pays off
Even where a special rule reduces certain taxes, documented payroll still records money leaving a parent's account (which can matter for Medicaid) and gives the caregiver proof of income. Once payments reach about $3,000 in a year, it's especially worth being deliberate.
Not sure what you'll owe — or save?
Estimate the employer taxes and the medical-expense deduction you may qualify for — about two minutes, no account.
Estimates only — confirm with your tax advisor.
It's not just senior care.
Anyone you pay to work in your parent's home is a household employee — and the tax rules are the same. Pick yours and we'll walk you through it.
Senior caregiver
Paying an in-home aide for your aging parent — the case KinPayroll is built around, start to finish.
Family member
A relative you pay to provide care. Some family wages are treated differently — the calculator helps you see your situation.
Learn moreNot sure? The tax calculator works no matter who you employ.
Common questions
Possibly — paying a relative to provide regular care can be household employment, but some family relationships are treated specially under the tax rules. It depends on who the employer is and the exact relationship. This is a case to confirm with a tax advisor; the calculator can give you a general estimate.
Pay a family caregiver right — clean records, either way.
Start free, keep a clean record of every payment, and bring an organized picture to your tax advisor.
Free accountNo credit card50-state tax estimates