Did you know that your income as a caregiver may be tax exempt?
On January 3, 2014, the Internal Revenue Service issued Notice 2014-7, 2014-4-4 I.R.B.445. Notice 2014-7 provides guidance on the federal income tax treatment of certain payments to individual care providers for the care of eligible individuals under a state Medicaid Home and Community-Based Services waiver program described in section 1915(c) of the Social Security Act (Medicaid Waiver Payments). If you think you might qualify for tax exempt status under Notice 2014-7, it is important for you to consult with your personal accountant.
A copy of the Notice has been provided below in addition to an IRS Frequently Asked Questions document.
Click here to view a copy of Notice 2014-7
Click here to view the IRS 2014-7 Frequently Asked Questions