@DianeW777 wrote:
Yes the method below should be used. No. Schedule C is not the appropriate place to enter this income.
What is the basis of that conclusion? A person can certainly be paid as an Independent Contractor under a Medicaid Waiver, if the circumstance show that the person is a Contractor.
@DianeW777 wrote:Because the IRS ruled that this income does qualify for earned income tax credit (EITC) purposes means the employee portion of social security and Medicare taxes must be paid.
What makes you say that Social Security and Medicare need to be paid to qualify for the EIC? As far as I know, there is nothing to support that statement. And it was a COURT that ruled that the income qualifies for EIC, not the IRS (although the IRS says you have the OPTION to claim it for EIC purposes or not).
