Caretaker Personal Income Tax Exemption- Pays more than 50 percent of support of a relative and a relative had gross income for the year less than the personal exemption amount [and has not filed a joint return with his or her spouse]
- Person paying the support may claim the relative as a dependent on the person's federal income tax return
| Employer of Outside Care Providers Pay Social Security and Medicare Part A taxes
- imposed on all employers and employees on cash wages in excess of the threshold in any calendar year
- Social Security Old Age, Survivors, and Disability Insurance (OASDI) taxes are limited to the Social Security wage base
- no limit for the imposition of the tax for Medicare Part A.
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