Can I Count the Money My Parents Pay Me for Acting as My Mother’s Caregiver as a Gift?

There is the strict reading of the law and what you can “get away with.” You are being paid for a service you are providing, which is the essence of employment. You must report earned income on your tax return. It is hard to argue it is a gift. This is also consistent with seeking reimbursement from the long-term care insurance company. That said, it’s doubtful that anyone is going to audit you or your parents and notice the discrepancy.