I work for In Home Supportive Services. I am a live in provider. I have a SOC 2298 on file certifying such (This explains the situation (https://www.cdss.ca.gov/inforesources/ihss/live-in-provider-self-certification). It means I fit into a special category where my income is tax exempt. HOWEVER, it still counts as earned income under 14-7 (https://www.irs.gov/irb/2014-04_IRB#NOT-2014-7) as a medicaid wage exemption. It means my wages still count for earned income credit, child tax credits, and the likes. The problem:
I transferred to a new county this last year, and THIS county is claiming I'm not entitled to a W2, since there are no federal or state deductions to list due to the tax exemption. The most they would do was send me a "wage statement" to verify how much I made this last year. I called my union rep, and they claim once I sign a form certifying I am a live in provider, I not only don't have to pay taxes, but the county is no longer required to provide me a W2. It was my understanding FEDERAL law requires all employers to provide a W-2. My STATE claims they do not issue W-2s to people in my profession, that is done at the county level. That is why I am chasing the county, NOT the state.
The COUNTY however is claiming that no one who signs a SOC 2298 is entitled to a W-2. (https://www.cdss.ca.gov/Portals/9/FMUForms/Q-T/SOC2298.pdf). The rationale as explained by my union rep, my taxable income boxes would say 0, federal withholding would say 0, and state withholding would say 0, therefore they don't want to bother printing one and they are not legally required, but may do so if they wish to. County payroll disputes this.
ACCORDING TO THE IRS: (https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income#q18)
MY STATUS DOES NOT EXEMPT ME FROM PAYING FICA/MEDICARE. Therefore I should have SOME exemptions being deducted. That is not taking place on my paystubs. The county is not charging me. The county. I received checks from the STATE, I am not an independent contractor. This whole things doesn't make sense, and smells illegal to me. I owe taxes this year for something unrelated. IF I report NO income to the IRS/don't file a W-2 with those taxes, now I'm committing fraud. I don't file a W-2, I can't claim thousands in tax credits I AM eligible for, because I have no EIN for an employer, no W-2 on record, nothing. I have received a W-2 in this profession EVERY year for the last 12 years. This is the first year I have been denied a W-2. Same client, same title, same work, just transfer to a new county.
I am an employed person with children, eligible for tax credits that would erase the tax debt I owe. I am not an unemployed person who owes the IRS with no claimable credits. I am being forced into the latter if I can't remedy this. I'd appreciate some type of help understanding what happened here, thank you. As a side note? I'm asking here, because Turbotax is the VERY first to ever get the exemptions for my profession right in their program. H&R block is still trying to figure it out. So I was hoping your gurus could put me on the right path, and give me something to file with you this year.
