Legal News

Does a Girlfriend Count As an Employee?
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

Howard Shih was dating Jue-Ya Yang when he invited her to move in with him. For a year she lived in his home and occasionally helped with chores. Shih gave Yang $10,500 in checks for personal and household expenses.

When tax time rolled around, Shih decided to claim a deduction on the $10,500. On a Form 1099-MISC, Miscellaneous Income, he claimed the $10,500 was wage income. Yes, he considered his live-in girlfriend an employee.

So one would imagine that Shih would get in trouble with the IRS.


Nope. Yang did, for not reporting the “income.”

Fortunately, the US Tax Court has now ruled against Shih. They held that the $10,500 in payments made during 2005 was a gift and not reportable as income.

The court did not buy Shih’s assertions under oath that he could not remember any dates or romantic encounters with Yang.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

Via TaxProf Blog via Above the Law.



Plaintiff Personal Injury Paralegal


Opportunity for a Plaintiff Personal Injury legal assistant to work in a growing practice. Must have...

Apply now

Associate Attorney - Insurance Defense

USA-CA-Los Angeles

Fowler Law Group is looking for an associate attorney with at least one year of insurance defense ex...

Apply now

Associate Attorney - Estate Planning


Cook Tillman Law Group is seeking an associate attorney for its Estate Planning practice group. ...

Apply now

Senior Commercial Real Estate Attorney


Senior level commercial real estate transactional attorney sought by a successful, mid-sized, real e...

Apply now




Search Now

Venture Capital Attorney

USA-CA-San Diego

San Diego office of a BCG Attorney Search Top Ranked Law Firm seeks corporate business attorney with...

Apply Now

Real Estate Attorney

USA-CA-San Diego

San Diego office of a BCG Attorney Search Top Ranked Law Firm seeks transactional real estate attorn...

Apply Now

Experienced Health Care Attorney


Portland office of a BCG Attorney Search Top Ranked Law Firm is seeking health care attorney with 5-...

Apply Now


To Top