turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

We received W-2 for first time for IHSS income for our son.Is it non-taxable income? Do I report this on the income tax? We did not receive a 1099-C. Son lives at home.

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

We received W-2 for first time for IHSS income for our son.Is it non-taxable income? Do I report this on the income tax? We did not receive a 1099-C. Son lives at home.

If you are caring for your son in your home under a Medicaid Waiver Program, you should not be getting a W-2 or 1099 for this income, as Medicaid Waiver Payments are generally non-taxable income.  Your first step should be to contact your agency and refer them to IRS Notice 2014-7 .  Ask them to correct the W-2, if necessary, to show zero wages.

If they refuse, you will have to report the amount on this W-2 as income, because it's being reported to the IRS.  Then you will make a second entry to zero out the income reported in Box 1 of the W-2 referencing the IRS Notice 2014-7.  

To enter the exemption from income:

  • In your Federal Return, choose the Wages & Income tab.
  • Tab through or Scroll down to Less Common Income and Show more
  • Start/Revisit Miscellaneous Income and choose Other reportable income 
  • Say Yes to continue to the screen "Other Taxable Income". Enter the description "Notice 2014-7" as the description and the amount as a negative number

A corresponding negative amount will be entered, making your taxable income from this W-2 effectively zero.  


View solution in original post

3 Replies

We received W-2 for first time for IHSS income for our son.Is it non-taxable income? Do I report this on the income tax? We did not receive a 1099-C. Son lives at home.

If you are caring for your son in your home under a Medicaid Waiver Program, you should not be getting a W-2 or 1099 for this income, as Medicaid Waiver Payments are generally non-taxable income.  Your first step should be to contact your agency and refer them to IRS Notice 2014-7 .  Ask them to correct the W-2, if necessary, to show zero wages.

If they refuse, you will have to report the amount on this W-2 as income, because it's being reported to the IRS.  Then you will make a second entry to zero out the income reported in Box 1 of the W-2 referencing the IRS Notice 2014-7.  

To enter the exemption from income:

  • In your Federal Return, choose the Wages & Income tab.
  • Tab through or Scroll down to Less Common Income and Show more
  • Start/Revisit Miscellaneous Income and choose Other reportable income 
  • Say Yes to continue to the screen "Other Taxable Income". Enter the description "Notice 2014-7" as the description and the amount as a negative number

A corresponding negative amount will be entered, making your taxable income from this W-2 effectively zero.  


We received W-2 for first time for IHSS income for our son.Is it non-taxable income? Do I report this on the income tax? We did not receive a 1099-C. Son lives at home.

PLEASE HELP HOW DO I MAKING THE INCOME FROM EMPLTION SHOWING IN TAX RETURNING , WHAT 'S WAY 

We received W-2 for first time for IHSS income for our son.Is it non-taxable income? Do I report this on the income tax? We did not receive a 1099-C. Son lives at home.

We received W-2 for first time for IHSS income for our son.Is it non-taxable income? Do I report this on the income tax?  by IRS NOTICE 2017-7  "it is exemption (-) on the income report, last year I use the product 

"TAXACT" I used the schedule as amount exemption as (-) 

  on the TURBOT TAX PRODUCT  how do i finish ? or I have return your product since  you did not have this

 work on your product 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies