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Live-in care is a set-up fraught with potentially big issues. The IRS would definitely consider your live-in helper an employee. Therefore as an employer, you are responsible for your state's withholding, employment taxes and reporting. If you don't like the live-in you may have a difficult time getting them to move out and may require an eviction process. Paying someone is room and board starves them for cash for their living expenses and they don't pay into the tax system, SS, Medicare, etc. It robs their own future. Finally, they should be thoroughly vetted for a criminal history. Whoever they are living with is a vulnerable person. Please consider this arrangement very carefully.
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