Hi Saylala!
You don't have to report your income due to IHSS payments being excluded from taxable income as long as you meet the IRS requirements. The main requirements are that you receive payments from a Medicaid waiver program and that you provide live in care.
Your SSI benefits aren't generally taxable unless all of your combined sources of income exceed $25,000.
You may possibly use your IHSS payments to qualify for the EIC if you meet the requirements. These are the main requirements -
Worked and earned income. For this requirement, your IHSS payments would qualify as earned income and used to calculate the credit. Your SSI benefits would not qualify.
Valid Social Security Number by the due date of the return.
Be a US citizen or resident alien by the end of the year.
You can't have any foreign income that you are filing an exclusion for on Form 2555.
You can't be a dependent of someone else and you must have paid more than half of the total cost to maintain a home during the tax year you file your taxes.
Be between the ages of 25 but under age 65.
Who Qualifies for the Earned Income Tax Credit?
Must I pay taxes on Social Security benefits?
