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Deductions & credits
If the IHSS payments you received qualified as "difficulty of care" payments as explained in IRS Notice 2014-7, they may be excluded from income. If you didn't receive a Form w-2 or 1099, and you have confirmed the payments meet the criteria for exclusion, then you don't have to enter them on your return.
You may choose to include all (or none), but not part, of these payments in earned income for determining the EIC or the ACTC, if these payments are otherwise earned income (wages or income from self-employment).
See here for questions and answers from the IRS on this topic.
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March 4, 2023
10:42 AM