I receive Medicaid waiver payments to take of my parent in my home. I got a 1099 MISC with the income in Box 6. I am not a health care provider. Does Notice 2014-7 apply?

My parent is disabled and would otherwise quality to live in a LTC facility. I take care of no one else in my home, just my parent. I am not running a business otherwise. The home and community based program is through the state and they sent me the 1099 with the Medicaid waiver payment total listed in Box 6. I only do tasks that fall under personal care.

1626

Expert Alumni

Apr 10, 2025 5:24:42 AM

It depends. As long as they are paying you through the difficulty of care program since you live in the same home and provide their care, yes you would qualify.

In this situation you would still need to enter the 1099- Misc and then back the income out since they sent it on a 1099 instead of a W2.

To enter the 1099 Misc as non-self-employment income take the following steps:

Income
1099-MIsc under Other Common Income
Enter the information from the 1099-MIsc
Continue through and say the work does NOT involve work that is like your main job
Select the years you received it
Say no, to did this involve an intent to earn money

Then you will take the following steps to remove the income:

Income
Less Common Income
Miscellaneous Income
Other Reportable Income
Answer Yes to Any Other Taxable Income
Enter the description such as 1099-Misc received for nontaxable Difficulty of Care payments
Enter the amount on the 1099-Misc as a negative number.

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I receive Medicaid waiver payments to take of my parent in my home. I got a 1099 MISC with the income in Box 6. I am not a health care provider. Does Notice 2014-7 apply?