Hello, I'm am at my wits end finding a answer. I receive Aid and Attendance Benefits and pay a family member monthly for care. Does my care provider (the family member) need to file a tax return for the money I pay her? I also want to mention it is her only income beside the SSI she receives for her daughter. If so, how do you report it? She has received no paperwork from Social Security, IRS or the VA? I understand my benefit is tax free, but what about the person (my family member) I'm paying to cook, clean, ect, ect.