topic IHSS - Do I file? And how? in Get your taxes done using TurboTax

IHSS - Do I file? And how?

mshodge21 — Tue, 09 Feb 2021 21:02:58 GMT

I am a provider for IHSS, but don't live with the person I care for. I did receive a w2 (as I did last year, but didn't file then), but I plan on filing this year. My question is, box 1 obviously has what I made last year however, box 2 says '0' while boxes 4+6 have numbers in them. When filing, what do I do? Does this count as taxable income or do I use this as other 'misc' income that I received? I'm sorry, I'm just a tad bit confused about how I should file my taxes since I don't want to make any mistakes.

Re: IHSS - Do I file? And how?

ColeenD3 — Tue, 09 Feb 2021 21:19:33 GMT

Since the recipient of the services you provide does not live with you, you are not eligible to exclude your income from Federal taxes. If your living arrangements change, you can fill out a self-certification form (SOC 2298) and your wages will be excluded.

IHSS

Re: IHSS - Do I file? And how?

mshodge21 — Wed, 10 Feb 2021 00:11:35 GMT

So it counts as pre-tax wages and not work where federal wages aren't withheld?? This is basically what I'm asking and I'm really slow when it comes to tax talk.

Re: IHSS - Do I file? And how?

HelenC12 — Wed, 10 Feb 2021 15:11:17 GMT

If these payments are paid to you in box 1 of form W-2 (they should not), contact the agency and try to get a corrected Form W-2. If you cannot get a corrected Form W-2, follow the steps below.

Note: Do not enter the W-2 in the Wages & Salaries topic. Instead enter it as Other Reportable Income under the Miscellaneous Income section.

Sign in to TurboTax Online, click Continue your return, then pick up where I left
Select Federal in the left-hand column, then Wages and Income on top of the screen
Scroll down to All Income, locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom
On the next page, click Start next to Other Reportable Income.

Per IRS: Your Medicaid Waiver Payments are included in income.

Per When the provider works in the care recipient’s home, but the provider has a separate home where the provider resides and regularly performs the routines of the provider’s private life, such as shared meals and holidays with family, the provider does not provide care for the care recipient in the provider’s home, and the provider may not exclude the Medicaid waiver payments from gross income.

If your W-2 has federal or state taxes withheld, you can enter these amounts in the Deductions & Credits section under Other Income Taxes as Withholding not already entered on W-2.

For more information, refer to IRS Notice 2014–7, 20144 I.R.B. 445 and the IRS FAQs.