If you were required to receive a Form
W-2, then you can do the following to prevent the IHSS income from being
taxable:
- Select the Wages and Income tab
- Click the I'll chose what I work on button
- Scroll down to Less Common Income
- Click Start next to Miscellaneous
Income
- Scroll down to Other
Reportable Income
- Click Start
- Click Yes when asked about other
taxable income
- Enter the description of the
income as: Caregiver Exempt per Notice 2014-7 & SOC 2298
- Enter the amount shown on the
Form W-2 as a negative number (e.g. -5,000)
- Click the Done button.
The income amount will be shown as a negative number on your
return; therefore, it will not show as taxable income.
