I have income from taking care of my son with special needs. Payroll confirmed that there will be no W2 as the income is exempt and nontaxable due to me being a live in provider. However, I do work another job. I started working on my taxes and saw that I do qualify for the EIC because of the taxable income earned from my second job. Would I still include my income from IHSS although I do not have a W2 or 1099? If so, would I include it under miscellaneous income/reportable income and then to remove it by subtracting it back out, so it won't be counted towards my taxable income? Is this only necessary to do if I do not have a taxable income and need it for the purpose of EIC only?
See how to do that here.
You might want to see the result of including and excluding the IHSS income from your earned income. If your other earned income is low you might receive more EIC than if you added the IHSS income.
I put the income in under Medicaid Waiver Program. Then went to the Earned Income section and check off no and yes, and both options still brought my refund down by a lot! So is it best that I just don’t include the IHSS income as I will not be getting a w2 or 1099? Thank you for your help!
You realize that the IHSS can be tax free but still considered for the calculation of EIC?