2014-7 is the number of the IRS Notice for Excludable Medicaid Waiver payments that IHSS falls under the category of. My question pertains to the special rules for this specific type of income, including a recent change the rules for taxation. 2014-7 income is unique in that it is not taxable but it can be included in earned or gross income if it is beneficial for the tax payer. This income can be counted as earned income to calculate refundable credits while being non-taxable at the same time.
