Greetings,
I am so glad to see this issue clarified here! I have a similar situation and was paid by an home health agency that administers the Medicaid funding. Since I am not considered an employee of the agency they issued a 1099-Misc. to me. The payment is listed under box 7, non-employee compensation. I assume the answer is the same as the one Julie provided: This income is excludable because the IRS will treat Medicaid waiver payments as difficulty of care payments under Sec. 131 of the IRS code. Is this correct?
Also, Julie, what is your experience with taxes? Are you affiliated with Turbotax or an independent tax consultant?
