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ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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Tax question: I live in Idaho and am a Certified Family Home

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Tax question: I live in Idaho and am a Certified Family Home Provider. This means I provide in-home care to a disabled adult. Last year was my first year of doing this, and I've been told by others doing this, as well as some working in Medicaid, that the money I receive is tax exempt. I received a 1099 from Medicaid, and when I put it into Turbotax is shows as income. Am I doing something wrong? I apologize if I haven't given you enough info...I can provide more if you need...thanks!

Shawn P Adamo :

Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.

Shawn P Adamo :

This income is exempt from both federal and state income tax.

Shawn P Adamo :

here (the very last section references that)

Shawn P Adamo :

I have no idea why medicaid sent that 1099. i would contact them . Don't include it in your turbotax. You can always explain why of the IRS asks.

Shawn P Adamo :

By then medicare will hav corre ted this issue.

Shawn P Adamo :

If this does not answer your question please let me know. Also let me know if you have additional questions.


This is my full time job and I only get paid if you accept my answer. We work on the trust system at JA.


If you understand my answer and have no more questions, please accept and please eave positive feedback (if so inclined). Thank you.

Customer:

Hello, and thank you for your answer. I contacted Medicaid this morning, and the woman told me the 1099 was not sent to me in error - everyone gets a 1099 for paid services. I get what she's saying, but I still do not think I was issued the correct form. Do you have any other suggestions? Or should I contact a different medicaid office? Thank you so much for your help - I am so frustrated with this issue!!

Shawn P Adamo : As a CPA I can explain the tax code. Despite what they said the federal and state exemption is the rule. I know it's not from your state but that's why I sent the link bro "substantiate" my answer so you don't have to guess whose answer is right from among sevarl you may receive.
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