Does anyway get paid to take care of a disabled family member ? I heard there are tax credits , a lower tax percentage or something of the sort ? Any know if this is true

[Vanessa A]

Yes, some people get paid under Medicare Waivers to take care of disabled family members. This is not a tax credit, however, you do not have to claim it as income  so it is tax free income.  

Depending on who the family member is and where they live, you may also be able to claim them   qualifying child or a Qualifying Relative to claim the  Child Tax Credit or  EITC

Tax Credits for Disabled Dependents

Tax Tips for Caring for a Disabled Spouse

[mcgmat24]

So he has Medicaid and I actually work through a home health care company to take care of them - so it’s not Medicare and it’s technically not through the government , any other thoughts ? Thank you for answering my questions so very appreciated 

[Vanessa A]

Who is he? How are you related?

Is this a Medicaid waiver program that is paying the agency for you to take care of him?

Did you get a W-2?

[mcgmat24]

He is my brother and yes I got a w2 

[Vanessa A]

Does he live with you?

I would suggest doing some additional checking with your agency.  This income may qualify as Medicaid Waiver Income and you may be able to exclude it from your income. 

[Ibecolin]

We take care of my wifes son who is on a waver we both get w2s for this they take out ss and Medicare tax but little in fed tax this year we owe fed tax is this right. I can't see if I should be paying tax on this income I am using TurboTax as I have for years. Thanks hope this makes sense to you   

Colin

[AmyC]

If you have Medicaid waiver payments from IHSS (in home supportive services), you have two options: taxable or not taxable. 

• If you make the income taxable, you can use IHSS income for child tax credit and earned income credit, if you qualify. These credits can outweigh the tax and give you a refund, sometimes.
• To make it non-taxable, see  How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?.

If you need additional help, please reply with more information.