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Ihss difficulty of care payment

I have been asking several numbers via IHSS, how do I have ssi and Medicare taken from my earnings.

It has been since this exempt nonsense has began.

Too many years of zero taken hence  showing zero earned to my social security and Medicare.

This will obviously make a deficit  on my ssa award when it comes time.

Ca has rationed me a single digit percentage vs what they could pay for care and services. I could not do that to my son. What I did not know was alone I could not afford services needed.

Furthermore could not create time to get  delay and deny tactics across too many resources, ending in exhaustion and not enough time to give my son the attention he needs.

It should not be so hard.

If I can begin adding to ssa and Medicare, how.

Much obliged

M. Ruiz

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1 Reply
MonikaK1
Employee Tax Expert

Ihss difficulty of care payment

If I understand correctly, you are concerned that your California IHSS "difficulty of care" wages don't have Social Security and Medicare taxes withheld. You could bring up this subject with the agency that is employing you for information about the rules under which you are employed. It's possible that your wages could be classified as subject to Social Security and Medicare depending on how the employment arrangement is set up.

 

See the excerpt below from this IRS webpage that addresses the tax treatment of Medicaid waiver payments.

 

Q12. I receive payments that are excludable from gross income under Notice 2014-7. Are the payments subject to Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA)?

A12. Maybe. Whether the payments are subject to social security and Medicare taxes depends on whether you are an employee of the agency, an employee of the individual care recipient, or an independent contractor. If the agency is your employer, the payments are subject to social security and Medicare taxes. See Q&A 18 under Agency Questions. If the care recipient is your employer and these payments are wages for that employment, the payments are subject to social security and Medicare taxes unless one of the exceptions for domestic services applies. See Q&A 19 under Agency Questions. If you are an independent contractor, the payments are not subject to social security and Medicare taxes. See Q&As 13 and 14.

 

 

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