Health Care ..What do I need??

What is the name of your state? Maryland

OK!!!!!!!! Here I go.

My GF went to a Tech School and has been helping her mother take care of an elderly person for the last 3 years. With this in mind a close family member mentioned her name as possibly taking care of another women. The deal would be this.

Her and I move out and into this womans house. She pays for our groceries/rent/phone/gas and electric. In turn my GF takes care of her (bathing, cooking, cleaning, etc.) I will be there to help her while working part time.

My question(s) is this. Legally what would we need in this ordeal? We wouldnt have benefits, so thats a factor. Would we need a contract? What should it contain?

Also, where can I research to find out what salary we should receive.
Thanks for any help you may give us. BH

HER AND I MOVE OUT AND INTO THIS WOMAN’S HOUSE. SHE PAYS FOR OUR GROCERIES/RENT/PHONE/GAS AND ELECTRIC. IN TURN MY GF TAKES CARE OF HER (BATHING, COOKING, CLEANING, ETC.) I WILL BE THERE TO HELP HER WHILE WORKING PART TIME.

The value of your share of the groceries, rent, phone, gas, and electric is taxable income to you. I suggest you get IRS Publication 17; Your Federal Income Tax and read about how you are to pay the tax on this. Look up “estimated tax,” which is what you will have to pay on that income. You can download the publication for free at www.irs.gov.


MY QUESTION(S) IS THIS. LEGALLY WHAT WOULD WE NEED IN THIS ORDEAL? WE WOULDNT HAVE BENEFITS, SO THATS A FACTOR. WOULD WE NEED A CONTRACT? WHAT SHOULD IT CONTAIN?

You don’t actually need a contract, but it would be a good idea to have one just in case a dispute or disagreement arises. The contract should simply specify what you and your friend will do and what you will get for it. Be as detailed as possible. Have all three of you sign it.

what if we dont pay taxes? is that illegal? or is it a benefit to pay taxes?

You don't have an option not to pay taxes and an employer cannot absolve you of that responsibility. If you don't pay income taxes as required by law and the IRS finds out, you will be subject to very significant fines, penalties, back taxes with interest, and possibly even jail time. Tax evasion is a federal offense and they can persue criminal prosecution against you. And then you'll have your State IRS to deal with when the feds are done with you.

but this is private salary basically...legally do we stil have to do this?

im not trying to break the law...im just trying to do whats best...

There's no such thing as a private salary. You owe taxes on all earned income. Paying taxes is mandatory. There is no legal way to get out of it. Failure to pay taxes is breaking the law and subject to many nasty penalties which can include hefty fines and/or jail time. Do you have it clear now?

ok i understand...thanks for the advice...

now i just need to know how to report this to the irs...and what form to use

I'm not a tax person but I do know there are specific rules for the self-employed and/or domestic employes.

A good place to start researching is at www.IRS.gov.

I am a tax person, and as I suggested above, you should get IRS Publication 17; Your Federal Income Tax and read about how you are to pay the tax on this. Look up “estimated tax,” which is what you will have to pay on that income. You can download the publication for free at www.irs.gov.