The relative caregiver stipends is generally not taxable so let's look at the 1099-MISC. The payments are really reimbursements for food, shelter, clothing, certainly not wages.
Your worker is confusing tax terms. Income for eligibility (like food stamps or Medicaid) vs taxable income on your tax return. While it may not be taxable, it can count as income to help qualify for tax credits.
Follow these steps to get the 1099-MISC on your return and not taxable:
- Open to the federal income
- edit your 1099-MISC
- values are entered,
- continue
- reason for 1099, DCS relative caregiver stipend
- continue
- Any uncommon situations?
- Select this is a Medicaid wavier payment
If your program asks:
involve work like main job? No
What years? only 2025
Best wishes, you are doing great!
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