topic How do I file the taxes if I'm an IHSS provider? in Get your taxes done using TurboTax

How do I file the taxes if I'm an IHSS provider?

meri2991 — Sat, 01 Jun 2019 15:54:05 GMT

You probably don't. IHSS payments are nontaxable and non...

DanielV01 — Sat, 01 Jun 2019 15:54:07 GMT

You probably don't. IHSS payments are nontaxable and nonreportable income if you live with the person who needs the assistance you are providing.

But I don't live with the person who I care for

meri2991 — Sat, 01 Jun 2019 15:54:08 GMT

But I don't live with the person who I care for

Do you have amounts in box 1 and 16 of your W2? This is...

DanielV01 — Sat, 01 Jun 2019 15:54:08 GMT

Do you have amounts in box 1 and 16 of your W2? This is CA, correct? I don't want to assume.

It has amounts in all except from 7-13. I also have 2 W2s...

meri2991 — Sat, 01 Jun 2019 15:54:10 GMT

It has amounts in all except from 7-13. I also have 2 W2s one of them doesn't have an amount in box 2, and yes it's CA

You will enter the W-2s as if you work for a traditional...

DanielV01 — Sat, 01 Jun 2019 15:54:12 GMT

You will enter the W-2s as if you work for a traditional employer. Because you do not live in the home for the person you are providing services for, this Medicaid Waiver payment is still taxable. A blank box 2 only means that Federal taxes were not withheld from your income, but the wage amount reported in box 1 is still taxaable. The following California FTB (Franchise Tax Board) website link describes why: California IHSS Payments

You may see other posts related to these payments about Notice 2014-7. That notice will not apply to you, as described in the link I provided, because the care you provide is outside of your home.

Fortunately, the provider has withheld appropriately the correct taxes (Boxes 7-13 are very often blank on Forms W-2, so what you see is normal)

Re: How do I file the taxes if I'm an IHSS provider?

lrsdranger82nd — Fri, 31 Jan 2020 10:07:58 GMT

I live with my 2 sons who I provide IHSS care for in the state of CA however I see wages on 1 and 16 everything has been life as far as the Tax exemption. I just wanna make sure I do this right and avoid problems with the IRS, thank you for the help!

Re: How do I file the taxes if I'm an IHSS provider?

JamesG1 — Mon, 03 Feb 2020 01:36:07 GMT

You have received a W-2 and income is reported in boxes 1 and 16?

This help addresses CA IHSS payments.

Note in this TurboTax Help that you may yet be contacted by the IRS. Their first reflex is to question why you are not reporting income reported on a W-2.

Re: How do I file the taxes if I'm an IHSS provider?

lrsdranger82nd — Tue, 04 Feb 2020 14:01:26 GMT

yes the W2 has a amounts on both lines 1 and 16

Re: How do I file the taxes if I'm an IHSS provider?

JamesG1 — Tue, 04 Feb 2020 21:02:37 GMT

Were you told that your payments would not be taxable income under IRS Notice 2014-7?

It sounds like you would qualify for the exclusion of the W-2 box 1 amount from your taxable income.

IRS Notice 2014-7 can be found at this link. Click on the hyperlink Notice 2014-7 in the center of the page.

Certain Medicaid Waiver Payments for In-Home support services are excludable from gross income and should not be included in your earned income. This is the case even if you have received a W-2 for performing these services.

If you have received a W-2, this help explains how to enter the income and then remove it from your taxable income.

Be sure to retain all your documentation. The IRS is likely to ask questions about this income at some later time.

Re: How do I file the taxes if I'm an IHSS provider?

lrsdranger82nd — Tue, 04 Feb 2020 21:19:26 GMT

Thank you for the input! I have all documentation saved and ready.

Re: How do I file the taxes if I'm an IHSS provider?

johno1064 — Fri, 21 Feb 2020 01:07:07 GMT

If you live with the person that you care for and you "want" to report your wages. Fill out W2 as normal and then in box 14 if you scroll down the list to medicaid waiver or payment and enter the wages again this will make them non taxable. You can also choose not to report this income but you may be contacted about these wages but as long as you have the proof that they lived with you then you should be okay.

Re: How do I file the taxes if I'm an IHSS provider?

gitzelbedolla — Wed, 26 Feb 2020 22:32:03 GMT

I don't see that option on section 14 please help!!

Re: How do I file the taxes if I'm an IHSS provider?

LeonardS — Wed, 26 Feb 2020 23:07:57 GMT

IHSS payments are non-taxable and non-reportable income if you live with the person who needs the assistance you are providing. You do not have to file a tax return when you qualify as an IHSS provider.

Re: How do I file the taxes if I'm an IHSS provider with IRS Notice 2014-7 Income Waiver

Davidg1960 — Tue, 10 Mar 2020 19:34:51 GMT

It would be great if there would be an interview section within the software/online filing to mention this. As you are aware, in the state of California a W-2 is generated with Line 1 wages as $0, but other required withholdings are included to assume for a non-professional filer, that it needs to be reported on their taxes. In addition, I file as married and my Wife has reportable income. I spend hours completing the online questionnaire, only to be rejected for e-filing. If I knew that I didn't need to include my W-2, It would have saved me a lot of time.

Appreciate the answer from the expert in any case.

Re: You probably don't. IHSS payments are nontaxable and non...

PangV01 — Tue, 17 Mar 2020 23:20:10 GMT

My W2 boxes 1 and 16 have wages and I live with the person I care for, which is my son. Can I still file and claim the child dependent credit or not?

Re: You probably don't. IHSS payments are nontaxable and non...

ThomasM125 — Wed, 18 Mar 2020 02:27:05 GMT

I believe you are referring to the child tax credit or the dependent credit. If your child qualifies as your dependent then you may be entitled to the child tax credit or dependent credit. You just need to enter him in TurboTax as your dependent and answer the questions to see if he qualifies.

Re: How do I file the taxes if I'm an IHSS provider?

Btomsich7891 — Wed, 01 Apr 2020 22:02:34 GMT

Is claiming a dependant be your mother? I take care& live with my mother with dementia and had received a w-2 and was wondering if I could still file and claim her as a dependent. I had federal taxes withheld all year even though I was told I was exempt from being taxed because I live with her. If I file will I get anything back? Box 10 for dependant care benefits is 0.00 so does that mean I can't claim her as a dependent? Thanks for your time!

Re: How do I file the taxes if I'm an IHSS provider?

LeonardS — Wed, 01 Apr 2020 22:18:25 GMT

If you meet these requirements you can claim your mother as a dependant.

Do they live with you? Your relative must live at your residence all year or be on the list of “relatives who do not live with you” in Publication 501. About 30 types of relatives are on this list.
Do they make less than $4,200 in 2019? Your relative cannot have a gross income of more than $4,200 in 2019 and be claimed by you as a dependent.
Do you financially support them? You must provide more than half of your relative’s total support each year.
Are you the only person claiming them? This means you can’t claim the same person twice, once as a qualifying relative and again as a qualifying child. It also means you can’t claim a relative—say a cousin—if someone else, such as his parents, also claim him.

Re: How do I file the taxes if I'm an IHSS provider?

Angie351 — Sun, 19 Apr 2020 17:06:44 GMT

You dont