If I get to file the SOC 2298, could I then claim for both exclusion of the income and eic?
I read here it's a new case (Feighs vs Comm 2019) but I'd appreciate some people double checking the matter.
It's also quite a bit confusing for me. I can't seem to fully understand the conclusion.
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/how-to-exclude-ihss-earnings-and...
https://www.irs.gov/pub/irs-aod/aod-2020-02.pdf
https://www.civicresearchinstitute.com/online/PDF/%20JTI-3701-06-Feigh.pdf
Judge Goeke discussed the difference between the meanings of
“included” and “includible” at some length:
This Court has previously opined on the meaning of “includible” versus “included,” and we have held that these words are not functionally
the same.24 While “included” refers to the actual treatment of income,
“includible” refers to a required treatment of income, whether or not the
income was actually so treated.25 Thus, an item of income is “includible”
in gross income if it is required to be included as income irrespective of
whether the item was actually included in the taxpayer’s gross income.
Because [the Feighs’] Medicaid waiver payment is “includible” in their
gross income but for Notice 2014-7, . . . the question for us becomes
whether a notice can effectively usurp Congress’ authority in granting
tax credits by denying petitioners a credit they would have been entitled
to in the absence of this notice.”26
The answer was No. The notice had concluded that the “treatment of
qualifi ed Medicaid waiver payments as ‘diffi culty of care payments’ is consistent with the defi nition under [Section] 131(c).”27 However, wrote Judge
Goeke, “these payments clearly do not meet the plain statutory defi nition
found in the Code.”28 The payments therefore were held to be includible in
gross income in 2015, and they therefore did constitute earned income for
that year within the meaning of Section 32(c)(2)(A).
