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.

[KittyM · Accepted solution]

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.  

[tax2021_K]

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

[tax2021_K]

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