I am caring for only my family member no other people. When TT start filling out a Schedule C as if I am a Contractor with a business which I am not. How to list the amount on the 1099 Misc nut deduct it as nontaxable using Notice 2014-7 Difficulty of Care?
Report using the instructions below.
Enter your caregiver income using the following steps (do not enter the Form 1099-NEC).
Because the IRS ruled that this income does qualify for earned income tax credit (EITC) purposes means the employee portion of social security and Medicare taxes must be paid.
Follow these steps to remove the income from your tax return.
When you return to the Wages & Income page, scroll to see the negative income beside Miscellaneous Income, 1099-A, 1099-C; This will remove the income on your return for the IHSS or other payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver program.
Report using the instructions below.
Enter your caregiver income using the following steps (do not enter the Form 1099-NEC).
Because the IRS ruled that this income does qualify for earned income tax credit (EITC) purposes means the employee portion of social security and Medicare taxes must be paid.
Follow these steps to remove the income from your tax return.
When you return to the Wages & Income page, scroll to see the negative income beside Miscellaneous Income, 1099-A, 1099-C; This will remove the income on your return for the IHSS or other payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver program.
Beginning in Tax Year 2022, Schedule 1, Line 8s will automatically report the Medicaid waiver payment as a subtraction. It is no longer necessary to create an offset amount as negative other income. Doing so will erroneously subtract the Medicare waiver payments twice.