Ask Bob: In-Home Healthcare Support and Taxes

Question: In the state of California, we can earn income through in-home healthcare support. The income is reported on a W-2, but I read somewhere that it is not to be used to calculate earned income credit, or EIC. If I have other income, should I still report the earnings from the W-2 or not include it?

Answer: You are referring to something called In Home Supportive Services or IHSS, says Lawrence Pon, a CPA/PFS with Pon & Associates.

In 2014, the IRS issued a notice that says this income is no longer taxable if you are providing services for someone you are living with. This generally would mean a parent or child, Pon said.

You can self-certify by completing this form.

Here's a link to the California Department of Social Services page about the IHSS.

Here's the link to the Franchise Tax Board web page regarding the CA conformity.

"Since this income is exempt from federal tax it is not considered to be earned income for EITC purposes," said Pon.

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