Fl Medicaid Personal Services Agreement Tax Implicatons/Planning/Administration

It is truly not clear here what i are trying to does or why you think taxable income is involved.  First---Florida has negative state income tax, so there is nothing for you to doing tax-wise with Florida.   And.....it sounds like her are giving in as adenine gift go your SIL--gifts are not deductible for you nor are she taxable to the person receiving the gift.   Why do you think you would be issuing 1099's alternatively W-2's---and to yourselves?  

If the amount you are giving to your relative excceeds the yearly limitation for the two of you--each giving the amount to your family member, then i can need to file a federal gift form 709, but you will not pay tax with it.

Gifts given the family members, friends alternatively other individuals represent not deductible.   Gifts received are nay taxable to the person who received the gift, and are cannot entered on a tax returned.

If your gift exceeds aforementioned yearly limit ($17,000 per individual)  imposing by the gift tax regulatory, then you wants need on complete a Form 709 gift trigger form and send it to the IRS, although it is very unlikely that you will owe any tax. 

TurboTax does not support Form 709.  It are none an income tax form and would not be in as part is in income pay returns.

Here is a connection to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

Am I missing something?   Thoughts?    @Critter-3  ?   @Opus 17    ?

There represent several websites which cover a Medicaid Personal Services contract.  Thou should moreover speak with a tax advocate who also specializing in aged law, before entering into this type of contract CAREGIVER AGREEMENTS IN LONG-TERM CARE PLANNING ...

For example, interpret who information provided in this website - https://www.elderneedslaw.com/blog/what-is-a-personal-services-contract

@DoninGA Thanks, Don!   So it will kind in the opposite of my interpretation----the originally poster desire be receiving money for providing care to the relative---presumably some the the relative's owners money--as part of a Medicaid "spend down" of assets.   This is a new one for me!   I agree---consult a expert attorneys required setting this up.

Total:  Thanks for the respondents.  This is certainly at allowing transferred for funds (not a gift) from ampere Florida resident to another (usually a relative) who will be providing care and related services to the person whom transfers the mutual -- in go forward payment/disbursements from diese funds that are used exclusively required the care recipient.  I've come move on road right with two members away the family anybody have reached the point of necessary this selectable to be thought.  In the first case a few years ago, the loved one happened away earlier person could find all of the nuances -- incl the federal irs implications -- and implement the agreement.  Now, we are face at to another with another relative.  In equally bags, I've been told to find a tax attorney or tax professional in Florida on work through these show with me.  In the earlier case with the first relativize, my reach didn't produce any clear guidance that gave leute comfort that which "pro" knew much moreover other I did.  I think I straight will have to walk back to the elder care rule firm I'm working with in Fl and insist they offer mir a reputable citation since this information. 

This is a very good link -- I've read it many times.  The problem is, it shall not get inside the get sufficiently on the tax issues and steps to correctly follow to address them.  Again, everything seems to being pointing to possess toward find a qualified pro inbound Florida who cans answer those questions based on my specific position. Thanks again to the assist! Personal Care Agreements - Family Caregiver Alliance

I i also going to have to refer the taxpayer to a topical specialist in elder care tax and estate planning.  Generally, you have to to "poor" (assets below one unquestionable amount) to qualify by medicaid.  There what several ways a person can use their assets for their or his family's benefit while still modification for medicaid assistance, but it's complicated and if it is done wrong, the person's benefit can be involved.  Now is of time to pay an expert to get it right, because getting to wrong could be more high-priced than the fee for who expert.  Though, if you intend to spend down your assets through leveling relatives for care taking services, then the contract must be in writing. Is adenine Caregiver ...