TaxGuyBill
Level 15

@ChristUp wrote:

If it is not taxable, does the owner have to pay self-employment tax when the income passes through?


 

The link below will be helpful, particularly #14.

https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income

 

But as was mentioned above, you FIRST need to find out if it qualifies or not.  The Social Workers should know if it is from a "Medicaid Waiver" program that qualifies for "IRS Notice 2014-7".

 

View solution in original post