Personal Services Contract
Is a personal services contract taxable and reportable?
Answers
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Hi alanmsings!
I'm unsure what you mean by personal services contract. Are you considering yourself an independent contractor? If so, then the IRS does consider that business income. Or if you are asking if the contract itself is reportable then let me know!
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Thank you, Lauren, for your quick response to my question. I am happy to clarify the details of this matter so you can give me the I need.
I had to place my mother in a nursing home due breaking her hip and dementia because I could not properly care for her medical needs.
In order to qualify for Medicaid, a Personal Services Contract was created with the assistance of a lawyer, in which she paid me for taking care of her prior to entering the nursing home.
I hope this helps.
Thank you.
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Before we can advise you further, we need some more information from you.
Did you receive a form W-2 or 1099-MISC or 1099-NEC?
if yes, who is listed a the payor (company issuing the form)?Were you paid under a state Medicaid program?
if yes, they might qualify to be excluded from income.
