I called the IRS regarding Notice 2014-7 because I had questions about the CSG (Consumer Support Grant). She indicated that it would be excluded as taxable income. Additionally, I called the Department of Human Services (MN) and the man that I spoke with said the same. There is a notice from the IRS, however, it doesn't specifically address the CSG.
https://www.irs.gov/pub/irs-wd/15-0040.pdf Also, when I called the fiscal agent that addresses paying me, they thought the funds are to be included in income. Lastly, (IRS) Whether the IRS will treat payments received under a state program other than a section 1915(c) program as difficulty of care payments depends on the nature of the payments and the purpose and design of the program. See Q&A1at
www.irs.gov/Individuals/Certain-Medicaid-Waiver-Payments-May-Be-Excludable-From-Income.
On January 3, 2014, the IRS issued Notice 2014-7 addressing the income
tax treatment of certain payments to an individual care provider under a
state Home and Community-Based Services Waiver (Medicaid waiver)
program. The notice provides that the IRS will treat “qualified Medicaid
waiver payments” as difficulty of care payments excludable from gross
income under § 131 of the Internal Revenue Code. For purposes of the
notice, qualified Medicaid waiver payments are payments by a state, a
political subdivision of a state, or a certified Medicaid provider under
a Medicaid waiver program to an individual care provider for nonmedical
support services provided under a plan of care to an individual
(whether related or unrelated) living in the individual care provider’s
home.
What are your thoughts on this?
