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Returning Member
posted Jan 23, 2023 9:02:19 AM

IRS Rule 2014-7

The residential care company that I am providing Medicaid waiver services through did not issue me a 1099.  They claim that they don't have to since it is non-taxable income.  I believe that I can add up the payments made to me and put them on line 1 of the 1040.  However, they charge me a 20% billing fee for these payments.  Is this something that can be written off?  If so, where in the TT Deluxe program?  Thanks in advance!

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5 Replies
Level 15
Jan 23, 2023 12:31:48 PM

Do you live with the person you are taking care of?

Returning Member
Jan 23, 2023 12:54:30 PM

yes, I live with the person that I am a care giver for.

Level 15
Jan 23, 2023 1:15:02 PM

I think that it’s unconscionable that they change you 20% for giving you a form. Fortunately you don’t need one. See the discussion here for how to report the payment without a W-2 

 

https://ttlc.intuit.com/community/after-you-file/discussion/how-and-where-to-post-claim-irs-notice-2014-7-excludable-income/00/693371/amp

Returning Member
Jan 23, 2023 2:33:37 PM

They don't bill me for the form.  They bill me 20% for using them to process the payments. I need to find out if that is a tax write off.  It amounts to about $12,000 per year. Thanks!

Level 15
Jan 23, 2023 3:25:49 PM

Since the income is not self employment income I don’t see how you can deduct those fees.