If you do not live with your client, it is not exempt and you will be charged taxes. Webmay 14, 2021 · under a recent office of tax appeals decision, income received as a caregiver from a medicaid waiver or ihss program for providing care to someone you. However, it's essential to be aware of potential tax obligations if you hire a caregiver to.

If you live with your client, ihss income is not taxed. Visit irs’ certain medicaid waiver payments may be excludable from income for more. Webthankfully, ihss benefits themselves are not considered taxable income for recipients.