IRS Issues Private Letter Ruling Finding Medicaid Payments to In-Home Care Providers Excludable Difficulty of Care Payments

The IRS issued a private letter ruling on I.R.C. §§131, 6041, and 6051, determining that Medicaid payments made under a state’s in-home supportive care program to care providers residing with care recipients qualify as excludable difficulty of care payments from gross income when the payments compensate for extraordinary care related to disabilities. [PLR 202610003]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.