In-Home Support Services (IHSS) Income (Non-Taxable)

In-Home Support Services (IHSS) income is given to taxpayers who are providing care to individuals who would otherwise require care in a hospital, nursing facility, or intermediate care facility. The taxpayer providing the care is caring for this individual in their home.

This income is typically reported on a W2, under the state of California the EIN is 20-0548930. It will have the name of the person receiving the care in the area of the Employer’s Name.

Per IRS Notice 2014-7, issued in 2014, this income is no longer taxable. The W2 may or may not have income under Box 1 of the W2.

  • If the income under Box 1 is “0” then no action needs to be taken.
  • If the income is being reported, the tax preparer needs to zero out that income to ensure it is not taxable by taking the following steps
  1. Enter the W2 as it is presented on the tax document
  2. Go to the “Other Income” area on the 1040
  3. Enter “IHSS INCOME – NON TAXABLE – NOTICE 2014-7” as the description of the “Other Income”
  4. Put the amount reported in Box 1 of the W2 adjacent to this description as a negative figure
  5. The 1040 should now show the income reduced to zero.

IRS Resource: