Re: Home programs and taxes

[Guest guest]

We issue W-2 to the therapists and pay social security. We do not withhold

payroll taxes. They are " household employees " and there is an IRS bulletin with

information:

http://www.irs.gov/publications/p926/ar01.html

We deduct our program as a medical expense. You can also deduct expenses related

to training workshops you go to and several other unusual things. See the IRS

bulletin on Medical expenses:

Publication 502 http://www.irs.gov/pub/irs-pdf/p502.pdf

We also obtained a " medical necessity " letter from her neurologist in case we

are audited.

[ ] Home programs and taxes

I am looking for information from parents who fund their own home programs.

How do you deal with taxes or claiming the therapy as a write off?

Thanks

List moderators: Jenn - ABAqueen1@...

Steph - Stephhulshof@...

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[Guest guest]

I have to disagree with the idea that therapists are household employees.

Although it is true their services are supplied in home the distinction is that

you are relying on the therapist with the help of the coordinator of the program

to guide and direct the program. You don't (at least I don't) direct how the

work is performed or what the next step is. The following excerpt from the IRS

bulletin clearly states that you must control how the work is done. In my mind

the work the therapists are providing is not household work and is not directed

by me. Additionally, if a speech therapist came to your home to provide

services you would not likely consider him/her to be a household employee.

From the IRS bulletin. " You have a household employee if you hired someone to

do household work and that worker is your employee. The worker is your employee

if you can control not only what work is done, but how it is done. If the worker

is your employee, it does not matter whether the work is full time or part time

or that you hired the worker through an agency or from a list provided by an

agency or association. It also does not matter whether you pay the worker on an

hourly, daily, or weekly basis or by the job. "

Dallman

" J.M. & M.E. Christian " <chri977@...> wrote:

We issue W-2 to the therapists and pay social security. We do not withhold

payroll taxes. They are " household employees " and there is an IRS bulletin with

information:

http://www.irs.gov/publications/p926/ar01.html

We deduct our program as a medical expense. You can also deduct expenses related

to training workshops you go to and several other unusual things. See the IRS

bulletin on Medical expenses:

Publication 502 http://www.irs.gov/pub/irs-pdf/p502.pdf

We also obtained a " medical necessity " letter from her neurologist in case we

are audited.

[ ] Home programs and taxes

I am looking for information from parents who fund their own home programs.

How do you deal with taxes or claiming the therapy as a write off?

Thanks

List moderators: Jenn - ABAqueen1@...

Steph - Stephhulshof@...

Post message:

Subscribe: -subscribe

Unsubscribe: -unsubscribe

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[Guest guest]

I think that in questions of this nature, it is worth talking to a

tax specialist or accountant if there are questions. My accountant

clearly states that therapists are household employees, because I

supply them with the materials that they work with, and because I am

the contractor of the consultant who directs the program. It might be

different if the consultant is the employer of the therapists who

come to my house and work with my child independent of any direction

from me, and if that consultant and I should part ways, that those

therapists would go with him/her.

We can split hairs, but the IRS is the ultimate arbiter of what is

the definition. We have enough stressors without contemplating an

audit or tax penalties. I would consult a tax professional about my

particular circumstance, and go with his/her advice.

Regina F.

> We issue W-2 to the therapists and pay social security. We do not

withhold payroll taxes. They are " household employees " and there is

an IRS bulletin with information:

>

> http://www.irs.gov/publications/p926/ar01.html

>

> We deduct our program as a medical expense. You can also deduct

expenses related to training workshops you go to and several other

unusual things. See the IRS bulletin on Medical expenses:

>

> Publication 502 http://www.irs.gov/pub/irs-pdf/p502.pdf

>

> We also obtained a " medical necessity " letter from her neurologist

in case we are audited.

>

>

> [ ] Home programs and taxes

>

>

>

>

> I am looking for information from parents who fund their own home

programs.

> How do you deal with taxes or claiming the therapy as a write

off?

> Thanks

>

>

>

>

>

>

>

>

>

>

> List moderators: Jenn - ABAqueen1@c...

> Steph - Stephhulshof@a...

>

> Post message:

> Subscribe: -subscribe

> Unsubscribe: -unsubscribe

>

>

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>

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