If I want the income to be excluded for caring for my adult son, do I need to request a corrected W2 from the agency or is there another way to get this income excluded?

[Anonymous]

Report income. As with any paid job, caregivers are legally required to report wages as taxable income. If at a later date your family member becomes eligible for Medicaid but your taxes have not been paid, Medicaid will consider the money a gift — not an expense. This could prevent your loved one from qualifying for Medicaid. On the other hand, the Internal Revenue Service is clear: When services are provided, all money received is a wage, not a gift.

you probably can claim you son as a dependent and deduct any medical expenses you paid.