In-Home Supportive Services Personal income types
Your In-Home Supportive Services (IHSS) income may be exempt if you received income from a Medicaid waiver or IHSS program for providing care to an individual you lived with.
Visit IRS’s Certain Medicaid Waiver Payments May Be Excludable from Income for more information.
May 5, 2021 update: Inclusion or exclusion of IHSS/Medicaid waiver income from earned income. Review How to report, California return.
How to report
Report your wages when you file your federal return.
Some or all of this income may be included or excluded in your federal adjusted gross income, which you report on your California return.
If you receive In-Home Supportive Services or Medicaid waiver income for the care of an individual you live with, you will exclude this from your federal AGI.
New: IHSS income may now be excluded from gross income (excluded from taxation) and still be included as earned income for purposes of determining the California Earned Income Tax Credit.
CalEITC (and other credits)
The inclusion or exclusion of IHSS and Medicaid waiver income may allow you to qualify for CalEITC and other credits.
If you already filed a tax return for a year where the statute of limitations to claim a refund is open, you must file an amended return to make adjustments to your income.
To determine if a tax year is still within the statute to claim a refund, please visit Claim for refund.
If you have not submitted a tax return: