Ask Larry

Is Providing Care For My Special Needs Child Earned Income?

I receive social security disability. I also have a special needs child that I provide habilitation for in our home. Social security says it counts as earned income. Is that correct t?

Hi. The answer depends on who is paying you to care for your child, and whether or not they classify the payments as wages. If you are classified as an employee, in which case the payments you receive would be reported on a W-2 form, then the payments would be considered as earned income. If you are not classified as an employee, though, then it's very unlikely that receiving payment for caring for your child in your own home would be considered as earned income. Being paid to care for a child could be considered as self-employment earnings, but only if the care is provided in the course of the caregiver's trade or business.

Best, Jerry

Posted: 
Feb 24 2022 - 12:34pm
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