Hi Ericag9218-gmail,
thank you for this question. IRS Notice 2014-7, called Difficulty of care payments are excluded from income. The exclusion covers income earned through the provision of personal care services when the Medicaid client and Provider live in the same household. As written, the IRS Notice only excludes payments for personal care services provided under Home and Community Based Services (HCBS) waiver programs, such as COPES, that operate under section 1915(c) of the Social Security Act.
This income is not considered self-employed income and is not subject to any self-employment taxes!
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