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New Member
posted Dec 10, 2023 1:47:05 PM

I work for IHSS. How do I file taxes?

Ihss

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1 Best answer
Level 15
Dec 10, 2023 1:54:06 PM

You don't include the income in your tax return. 

  • If you got an IHSS W-2 and Box 1 is zero, you don't include that W-2 on your tax return. IRS Notice 2014-7 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 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.

For more information, refer to IRS Notice 2014–7, 20144 I.R.B. 445 and the IRS FAQs.

2 Replies
Level 15
Dec 10, 2023 1:54:06 PM

You don't include the income in your tax return. 

  • If you got an IHSS W-2 and Box 1 is zero, you don't include that W-2 on your tax return. IRS Notice 2014-7 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 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.

For more information, refer to IRS Notice 2014–7, 20144 I.R.B. 445 and the IRS FAQs.

Level 15
Dec 10, 2023 2:01:59 PM

You should enter the W2 even if it has 0 wages in box 1.  It may qualify you for other credits.  

 

How to enter IHHS Medicare waiver payment W2
https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-w-2/qualified-medicaid-waiver-payments-w-2-show-earned/L1XZa89dh_US_en_US?uid=lq00yvbn