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I know that the friends need to report it as income but does Mom have responsibility other than just writing the checks?

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ConcernedDtrA: Pose your question to a CPA.
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Good advice here: talk to tax person.
If it were me and a 'now and then' situation, I would do in green.
Of course checks can be tracked.

* It may also depend on what the friend is doing. As these are 'friends,' there hopefully won't be issues although if you start to ask outsiders - people that your mom doesn't know, then it may be very different (i.e., church people, volunteers from a college or a 'friend of a friend' - word of mouth referrals.

However, do consider if the friend trips or falls / has an accident - and wants your mom to cover costs. There may be liability issues although perhaps I am over-thinking it. Does your mom have insurance?

You mght want to google "what is the difference between a friendly visit and a caregiver? and see what pops up. (Or words along those lines) ... or "I am responsible financially if a friend falls in my apartment? If could happen to anyone.

Gena / Touch Matters
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Geaton777 Mar 22, 2024
Gena, the problem with paying in cash is that those withdrawals are still obvious on her bank statements, unless she has had a stash of cash in her house for a while. The Medicaid app requires copies of her bank statements.
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If each person's pay is less than $600 totally in a single year, then no one needs to report it as income regardless of how they are paid (cash, check, Venmo, PayPal, bank transfer).

FYI if you pay them in cash make sure to have them sign and date a receipt for the cash, the amount and what it was for (and you keep this original).

The friends need to understand that if it exceeds $600 then they have to report it at their end because your Mom will be submitted a 1099. Your Mom will need their main physical address and SSN. Then your Mom needs to get the form to them before the end of January of the next tax year (so Jan 31, 2025 for wages paid in 2024). Whoever is managing your Mom's bills will need to keep track. Otherwise you can hire an online bookkeeping service, or check into Care.com which offers this specifically for caregivers.
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Your mom should speak with her tax person.
There is also a lot on IRS site if you google IRS information for seniors.

I do know that basically if you hire a "baby sitter" for your child when you go out for a few huors at night, you don't need to report by issuing W-2s.
Sitter is considered not a caregiver. A nanny IS.

However, if this is any substantial amount going out, then it can't also be considered as gifting for any 5 year Medicaid lookback in future, so it isn't something you can be "wrong" about.
Call IRS regarding this; long wait but they are very nice.
Or contact a CPA for this question. Would likely answer it free of charge.
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