2010 Tax Tips for Family Caregivers

If you are supporting an elderly parent, you may qualify for some tax benefits from the government that rewards you for your caregiving efforts. These tax benefits may include claiming your parent as a dependent on your tax return or deducting the contributions you made towards their medical expenses and medical care. In order to qualify for these tax breaks, you must first be aware of the tax benefits available and then determine whether or not you qualify.

Private Caregivers: Independent Contractors or Employees?

It is very tempting to compare the hourly rate of hiring a private caregiver to that of an agency caregiver and conclude that one would save quite a bit of money by hiring the private caregiver. After all, private caregivers usually charge anywhere from $12 - $15 per hour whereas Agency caregivers usually come with an hourly charge of $18 - $22.

There are many reasons for choosing and agency in the face of these numbers:

1. In almost every case the Law requires that private caregivers be treated as employees and NOT contractors. Thus requiring the withholding and payment of employment taxes.
2. If you employ a caregiver privately you should ensure that you have a Workman's Compensation policy that covers your employees. If not, claims against the assets or estate could result.
3. Scheduling, vacations, sick time, hiring and firing and all the other headaches that come along with employees

By the time you take into account the total cost of hiring private caregivers an agency cost model may look like the better deal overall.

Here is an Article from a Law Firm that goes into some of the issues in more details.

http://www.businesslawyerslosangeles.com/pdf/36364_rodireview_part1.pdf 

Don't forget the Texas Sales Tax Holiday this Weekend for certain appliances

ENERGY STAR^® Sales Tax Holiday Information for Sellers
Memorial Day Weekend: May 29-31, 2010

Looking to purchase ENERGY STAR appliances? Visit the Texas Powerful Smart Website to view shopping details and frequently asked questions. Vea esta información en español.

Additional Resources

• Frequently Asked Questions (at Texas Powerful Smart Website)
• Tax Code Sec. 151.333. ENERGY-EFFICIENT PRODUCTS

How to Report Tax
on ENERGY STAR Sales

For information on how to report tax on these sales, please visit Reporting Sales Tax on Tax-Free Items or call us toll free at (800) 252-5555.

During Memorial Day weekend, Texas shoppers get a break from state and local sales and use taxes on purchases of certain energy efficient products.
The 2010 ENERGY STAR sales tax holiday begins at 12:01 a.m. (after midnight) on Saturday, May 29, and ends at 11:59 p.m. on Monday, May 31 (Memorial Day).
The products qualifying for the exemption are:

• Air conditioners priced at $6,000 or less
• Refrigerators priced at $2,000 or less
• Ceiling fans
• Incandescent and fluorescent light bulbs
• Clothes washers*
• Dishwashers
• Dehumidifiers
• Programmable thermostats**