@Angelitak
I took care of my client for 3 months and the last month I took care of her she lived in my home how would I file and do I qualify for any kind of tax break
Double-check with IHSS as to how your income is classified. Earlier in this thread you will see I have posted a link to CA's website that discusses this further. However, if box 1 on your W2 is blank, you do not need to include the W2 on your tax return if you don't wish.
@Nicoletteeee
Hi all, I too am very confused for my IHSS W-2s. I’ve been a provider for about 6 years now and as of 3 years ago I started owing taxes. I asked a tax person and they said the IHSS wasn’t taking enough out causing me to owe so I went to the office to adjust my tax form but I’m scared it’s gonna happen again. I can’t afford another $1200 debt after 3 consecutive years. What am I doing wrong and can I do anything to relieve any portion of it
That depends. As stated above, if box 1 of your W2 reports $0, you probably did not have to include the W2 on your return. Remember, though, that the provision to exclude the Waiver Payments from income is when you live with the taxpayer. If you do not live with the taxpayer, the income is taxable just like any other wages are taxable, and you would need to fill out a revised Form W-4 (and perhaps the California equivalent) to have the correct amount of tax withheld.
However, if the income is excludable from tax, please see the link I post below on how you can remove the IHSS income from your tax return as part of an Amended Tax Return. (You will need to follow instruction in TurboTax to file an amendment for prior years dating back to 2017).
For both @Angelitak and @Nicoletteeee: Follow the instruction in the following link to be able to have the Medicaid Waiver payments subtracted out of earned income if you qualify to do so: Solved: How and where to Post claim "IRS Notice 2014-7 ...
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