Short answer: For most families in Structured Family Care (SFC), the pay is not taxed by the IRS. Family Hire pay is different. It’s usually taxed like a regular paycheck.
Why SFC pay is usually not taxed
An IRS rule (Notice 2014-7) says payments like these are not counted as taxable income when the caregiver lives in the same home as the person they care for. SFC requires you to live together, so most SFC caregivers don’t owe federal income tax on this pay.
What about Family Hire?
With Family Hire, you’re paid by the hour, and you may not live with your loved one. That pay is usually taxed like any job. If you do live in the same home, part of it may not be taxed. A tax preparer can tell you for sure.
Will it affect my benefits?
This is the question families ask most. The honest answer: it depends on the benefit. SNAP (food stamps), SSI, housing help and Medicaid each have their own rules about what counts as income.
Before you start, call your caseworker and ask: “If I’m paid as a family caregiver, will it change my benefits?” We’re happy to give you a letter that explains the program for them.
Keep it simple at tax time
- Keep your pay statements.
- Bring them to your tax preparer.
- Tell them you’re a paid family caregiver in Structured Family Care or Family Hire.
Free tax help is available through the IRS VITA program for many families.
Common questions
Do I have to pay Georgia state tax on SFC pay?
Georgia generally follows the federal rule. Ask your tax preparer about your own situation.
Will I get a W-2 or a 1099?
Ask us. We’ll explain the paperwork you’ll receive before you start.
Can taxes be a reason not to sign up?
For most SFC families, no. The pay is usually not taxed at all.
Talk to us
The call is free. Call or text (706) 786-3041. We’ll tell you which program fits and what to expect.