Get your taxes done using TurboTax

IHSS pay can be taxed and credit claimed on the federal level or it can be excluded from income. If it is excluded, there is no tax so none needs to be withheld. You get to pick which is better for your family. The IRS defines  earned income . You can use IHSS income for child tax credit and earned income credit, if you qualify. 

If you choose to exclude the income, select it is nontaxable after entry.

See  How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?