JotikaT2
Employee Tax Expert

Get your taxes done using TurboTax

The type of form you receive may be determined based upon your state of residence.  You might get a W-2 form or you might be issued a 1099 form.  This link provides details on how to report this information in TurboTax based upon the specific form you actually received. 

 

If you reside in the home where you are taking care of your mom, then these payments are not taxable.  However, if you reside in another home, then the payments would be considered taxable income.  Please see Certain Medicaid Waiver Payments FAQs from the IRS for more specific situations to determine how the income is taxed based upon your circumstances.

 

Also, this income while potentially not taxable, can be considered earned for purposes of claiming credits such as the Earned Income Credit.  The steps to determine whether you qualify are included in the first link provided above.  You will essentially answers questions in the Deductions and Credits section of the program to include the IHSS income for purposes of calculating any credits.

 

If your IHSS payments are considered to be nontaxable, then the payments would not affect your SSDI as they would not be considered to be earned income.

 

In regards to your inquiry for substantial gainful activity (SGA), please see this link for the amounts you can receive in order to keep your existing benefits.

 

@milehi99 

 

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