I provided home care to my parents while living with them and I also provided services to another family that I didn't live with. I got paid for both services and got a W-2 for both. Can I exclude that income? Please provide any references if available.
P.S: The state I'm in is MI
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If you moved into your parents' home and did not maintain a separate residence, you would qualify for the difficulty-of-care exclusion. Under § 131, “the provider’s home” means the place where the provider resides and regularly performs the routines of the provider’s private life, such as shared meals and holidays with family. Since you did not live with the other relative, those payments definitely do not qualify.
See Certain Medicaid Waiver Payments May Be Excludable from income.
If you moved into your parents' home and did not maintain a separate residence, you would qualify for the difficulty-of-care exclusion. Under § 131, “the provider’s home” means the place where the provider resides and regularly performs the routines of the provider’s private life, such as shared meals and holidays with family. Since you did not live with the other relative, those payments definitely do not qualify.
See Certain Medicaid Waiver Payments May Be Excludable from income.
Ok, so just to be clear the W-2 i had for my parents' service can be excluded but not the other one, correct? Thank you very much for the help
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