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These payments are exempt from Federal Tax. CA also follows the Federal treatment. See instructions below. https://origin-www.ftb.ca.gov/aboutFTB/newsroom/IHSS.shtml
TurboTax can exempt income under Notice 2014-7 per the IRS instructions. This Notice provides that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver (Medicaid waiver) program, are difficulty of care payments and excludable as income.
If these payments are paid to you in box 1 of form W-2 (they should not), first try to get a corrected Form W-2 from the payer. If you cannot get a corrected Form W-2, follow these steps:
Do not enter the W-2 in the Wages & Salaries topic. Instead enter it as Other Reportable Income under the Miscellaneous Income section. Take the following steps:
This both shows and explains removing the W-2 income, placing a zero on Line 21 of your Form 1040.
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.
I haven't receive my W2 for IHSS does anyone knows the EIN number for IHSS?
There is not one EIN for IHSS payments. Each state/program will have a unique EIN number. Since the IRS is not yet accepting returns, it is best to wait for your W-2. You risk having to amend your return and/or your refund being delayed if you submit your return earlier than necessary.
No, the supplemental payment is for sales tax on the IHSS services- usually these are not included on the W2.
How do you figure out if you paid sales tax on your IHSS payments received as a provider?
YOU would have sent the payment in to the state.
If you didn't make sales tax payments, they were not made.
The income can be exempt BUT it can also be claimed as taxable if it is beneficial for you to do so. (For the purposes of claiming the EIC and other refundable credits) US TAX COURT ruled in Feign v. Commissioner that Medicaid Waiver Payments are not necessarily nontaxable. The Court said that Notice 2014-7 does not follow the plain reading of the statute. The Feigns sued because they felt they were denied tax credits since the income was not taxed, so the Court allowed the Feigns to receive Earned Income Tax Credit and Child Tax Credit. The result of this Court Case is that Notice 2014-7 is now optional. IHSS income can be included as taxable income and you can claim credits such as Earned Income Tax Credit, Retirement Savings Credit, Child Tax Credit, etc. IF it is advantageous for you to do so. If you have any questions, please contact a qualified tax practitioner.
Hi I'm having same problem. Waiting for California IHSS W-2 but ready to file now!
Calling has not worked either. Anyone have the number to Post?
Thanks
It depends. I would advise filing without the IHSS W-2 and then amend your return once you have the information to report. To contact them, go to their website and look under IHSS Service Desk for Providers & Recipients, The number is (866) 376-7066.
If they do not send a W-2, you can file a substitute W2 in Turbo Tax by:
Returns including Form 4852 can't be e-filed per IRS regulations, so please make any reasonable effort to receive a copy of the W2 from IHSS.
Many don’t get a w2 or 1099 and they won’t send one if you’re an in home parent provider that has non taxable income with ihss so how do we get the ein number ? Calling ihss doesn’t work either.
Thank you I’m gonna give it a try !
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