In my case, I get IHSS in California for my child who lives with me (my pay-stub shows zero deductions in all categories) I recently received notice from DSS that IHSS wages are not considered part of gross income for both Federal and State Tax Purposes. As a result, I filled out the SOC Form 2298. I just completed my taxes without even waiting to see if I get a W2 from IHSS (I don't expect I will) . However, if I do get a W2 from IHSS I'll just ignore it until I get a notice from the IRS asking about it. At that point, that letter from DSS and IRS Notice 2014-7 is all the documentation I will need to show the IRS that my taxes were filed correctly.
***Edit 1/29/17: So I did end up receiving a W2 for 2016 IHSS after all.....apparently the SOC Form 2298 that I recently filled out in December 2016 will apply to FUTURE wages and thus its not retroactive.
