I assume that you are paid for providing care to qualified disabled individual
as difficulty-of-care payments.
That is your income
- but that payment is specifically excluded from taxable income
So - that payment is NOT counted when you apply for ACA insurance tax credit
here are two types of payments that are excluded form
income tax. - providing care to qualified foster individuals AND difficulty-of-care payments.
Difficulty-of-care payments. These are additional payments that are designated by the payer as compensation
the additional care that is required , mentally, or emotionally handicapped qualified foster individuals. A state
must determine that the additional compensation is needed, and the care the payments are made must be provided in your home.
Please see IRS
page 31 - left column -
Previously IRS held position that such income is NOT taxable if the taxpayer cares person and taxable if that person is related to the taxpayer.
HOWEVER - not long ago - the IRS changed that position
see here -
This notice provides that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver (Medicaid waiver) program, described in this notice, are difficulty of care payments excludable under §131 of the Internal Revenue Code
This notice is effective received on or after January 3, 2014. Taxpayers may apply this notice in taxable years the period of limitation
on claims credit or refund under §6511 has not expired.
That means - if the taxpayer reported that income as taxable - he/she may amend past three returns
and might be eligible for the refund.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.
Let me know if that answered your question.