CA IHSS live in provider - How to file

Hello, 

I am an IHSS provider in CA who lives with the recipient which makes my income non-taxable. However I have an amount in Box 1 of my W2 which is the same as in Box 16 . Do I need to pay tax on those wages or I report  that amount as a negative number under Notice 2014-7 using the other income category on the 1040? 

Thank you