Yes, for open tax years, you may choose to include all, but not part, of these payments in earned income for determining the EIC or the ACTC. For more information about EIC and the ACTC, please visit this IRS website. Providers are encouraged to consult with a tax advisor or contact the IRS directly with questions.
Here is how to add those payments to the return:
If you choose to report your payments to receive a credit: Click Edit/Add next to Job (W-2) and then click on Add a W-2. Enter the information as reported on your W-2. Enter the amount you received for IHSS Payments in Box 1 (even if this amount is not reported in box 1 of your W-2.)
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