So Ive got a client that gets paid over $40,000 by IHSS as part of a Medicad waiver program to care for her disabled son. This is her only income.

She gets a W2 with the 40k in wages in box 1 and I make the adjustment on Line 21 to exclude the wages per the notice 2014-7.   This computes the $1400 as refundable ACTC on the tax return.  Is this correct?

All my other clients with IHSS wages that are excludable per notice 2014-7 have submitted a Self Certification to IHSS so that their W2 that gets issued shows 0 in Box 1 so we avoid even having to enter it.

But in this clients situation, if she self certified, she'd lose that ACTC....something doesn't seem right here.