Personal Care Contracts – Is This Income Subject to Self Employment Tax?

Question:  Can you tell me if the money that I receive from a Personal Care Contract is subject to self-employment tax? I know that it is subject to ‘income tax’.

Yes, the money you receive under the Personal Care Contract otherwise known as a Personal Service Contract will be subject to self-employment tax treatment.  The tax situation causes some families to look for other solutions to protect the parent’s money.

Attorney I. Michael Tucker
Altamonte Springs, Florida