California FTB Issues Information on Individual Income Tax Exemption for In-Home Supportive Service Income

The California Franchise Tax Board (FTB) April 29 issued information on the taxability of in-home supportive services (IHSS) for individual income tax purposes. Taxpayers’ IHSS income may be exempt if they are paid through Medicare Waiver payments and live with the person to whom they provide the service. The FTB provides that: 1) taxpayers must report their wages when they file their federal return; 2) taxpayers may elect to include all or none of the IHSS income as earned income, which may allow them to be eligible for the state Earned Income Tax Credit (EITC) and other credits; and 3) ...