Hello,
Feigh v. Commissioner 152 tc no. 15, allows that income from difficulty of care payments (such as IHSS payments for in-home, family caregivers) are exempt, but now can be treated is earned income for the purposes of ETIC.
I read through IRB 2020–14 for the IRS, and I understand they are going to accept Feigh v. Commissioner.
But I couldn't find any guidance on how this should to correctly entered in the IRS 1040 form.
I have a client who was earning IHSS to care for her husband (who she lived with, hence exempt, received no W2), she was paid about $3600 in CY 2019 before he passed away. I would like to help her maximize her EITC.
Question 1: How should this be entered on the 1040 form to maximize EITC?
Question 2: California EITC is based off of IRS earned income, how should IHSS exempt earnings be correctly entered on the CA Form FTB 3514?
Thank you.
