IHSS help please

[lucrecia]

Can parents be claimed as dependents even tho taxpayer being paid by IHSS for the parents?

[Just-Lisa-Now-]

Maybe, do they meet the requirements to be claimed as dependents?

[lucrecia]

They do but the ihss w2 from one parent has $0 wages $0 withholdings but $26,161. in ss wages and medicare wages.

[Just-Lisa-Now- · Accepted solution]

Right, if the parents are living in the home with the taxpayer and the taxpayer is being paid to care for the parents as part of a Medicaid waiver program, those wages are excludable, and not taxable (thats why you have zero wages in box 1). 

But they can still be used for EITC purposes, if they qualify for EITC, the EIC worksheet has a place to include them.

[lucrecia]

Thank you so much Lisa. You are so Awesome!😁