I work for IHSS but not live in. Do I need to put anything in area where it says Enter the amount of IHSS Supplemental Payments you receiv?

[JamesG1]

Perhaps.  This question refers to supplementary payments only if you were paid as an In-Home Supportive Services (IHSS) provider.  Such payments are taxable on your Federal tax return but may not be taxable on your California tax return.

Click the link Learn More and it reads:

“You may have received a supplementary payment if you were paid as an In-Home Supportive Services (IHSS) provider and you paid sales tax on those services. If such amounts are included in your federal wages they may be excluded from your California income.”

[tml2021for2020]

I am working as IHSS provider. I take care my old man, but not live in. How do I know if I have supplemental payment? And I got payments by electronic transfer to my bank account. I received W-2 for 2020 . The W-2 just show numbers, nothing else.

Thanks for your explain clearly.

TML

[MaryK4]

California law allows an exclusion from gross income for IHSS supplementary payments received by IHSS providers. IHSS providers only receive a supplementary payment if they paid a sales tax on the IHSS services they provide. The supplementary payment is equal to the sales tax paid plus any increase in the federal payroll withholding paid due to the supplementary payment.

However, the exclusion only applies to payments for care in the individual care provider’s home where the care recipient lives under the recipient’s plan of care.

@tml2021for2020

[me_and_me]

Can any one clarify what number should go into that field?

I don't understand what sales tax has to do with IHSS's W-2?

[DMarkM1]

Likely you would not enter anything in the supplemental payment box.  As noted the supplemental payments are for sales taxes you may have paid for your services.  

Normally these live in home IHSS services are tax exempt.  However, if for some reason you separately paid sales taxes to your state and provided documentation to your employer who then paid you a supplemental payment, then you would enter that amount in the supplemental payment box as non-taxable in CA.   

[szetoyva]

same situation here, turbo tax 2021 was able to let me check off IHSS on the state side so i didn't need to pay as much tax but this year, in turbo tax 2022 I couldn't find that same option on the software.  please advise.  thanks

[KrisD15]

To clarify your situation and question,

What type of form was your IHSS payment reported on? A W-2 or statement or something else?

Does this payment only reflect the tax paid? 

How did you enter the amount in TurboTax? 

[szetoyva]

I have a W2 which all the info is enter in the beginning when I fill in the federal portion.  During the past 2 years (2020 and 2021 income tax), when I get to the State portion, TurboTax will prompt me to answer questions on IHSS.  I enter info as requested.  At the end, IHSS and HSA Contributions will be listed as 'Here's the income that California handles differently'.  However, this year (2022 income tax), Turbo box does not seem to have that option.  The odd part is that when I saved my Return as PDF, I'm still able to see the IHSS on line 10 on Schedule CA Adj.  When I  switch from 'Step-by-Step' to 'Forms' mode, the IHSS line 10 disappeared.  Do you know why?  Is it okay if I manually input IHSS (amount from W2 Box 1) on line 13 Other/Itemize as Subtraction?

Box 1,3, and 5 of my W2 shows the same number.  Fed withheld on box 2 is $0.  

[ShirlynW]

Please follow these steps.

[szetoyva]

Does the "IRS Notice 2014-7 excludable income"  only apply to live in?  I take care of my dad overnight for his daily medical treatment.  I have my own home so I don't actually consider myself living with my dad.  Not Live In

I am confuse.  Can you please clarify?

1.  Do I qualify for state exemption for income I receive from IHSS?   If not, then it ends there.

2.  If yes, if I put the 'Notice 2014-7 'under federal (Less Common Income/Miscellaneous Income/Other Reportable Income, then enter the W2 amount as negative), that would mean exempt from federal.  Is that right?  I thought, I can only be exempt from the state side which i don't know where to enter this info.  Can I put it under State only (State Taxes/Miscellaneous/Other Adjustments to Income, and then enter the amount in the 'Subtraction' slot?  Would that be the right thing to do?  that way, I only owe federal, not state.

Thank you so much!