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Subject:  Medical Deduction for Caregiver Date:  9/16/2000  10:15 PM
Author:  stockmover Number:  40011 of 127616

Medical Deduction for Caregiver??

I am considering hiring a full time [24/7/365] caregiver for myself [who is a close friend of mine] because I am permanently disabled and homebound. If I provide room and board for the caregiver and pay her a monthly salary of say $1000, will I be able to deduct these costs [the portion of which that exceeds 7.5% of my AGI] as an itemized medical deduction?

Under these circumstances will I also be required to:

a) Withhold both Federal and State income taxes from her paycheck?
b) Withhold FICA taxes from her paycheck?
c) Pay the employer portion of the FICA taxes?
d) Pay Unemployment Insurance taxes or any other related employer taxes?
e) Comply with Minimum Wage Laws?

Although I do not feel as if I am an employer under these particular circumstances, now that I require full-time assistance in my daily living needs, I am not sure whether the IRS will view it the same way?

Any help and advice in this matter would be most greatly appreciated.

Thank You

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