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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10432
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I run adult home in my home I signed contract with MCO care

Customer Question

I run adult foster home in my home I signed contract with MCO for respite care but I did not had any residents for respite except one in 2015 can for 3 weeks.If respite care payments are not tax exempt can I have tax exempt for other residents and what kind of evidence should I get from The Agencies that their payments are tax exempt /medicaid waiver program/
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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From IRS Here:

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http://www.irs.gov/Individuals/Certain-Medicaid-Waiver-Payments-May-Be-Excludable-From-Income

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If you do not have independent knowledge that the payments you make are excludable from gross income under Notice 2014-7, you may rely on a written statement by the payee, signed under penalties of perjury, unless you know that the statement is not true. The statement should affirm the facts you need to determine that Notice 2014-7 applies to the payee. For example, a statement may be worded as follows:

Under penalties of perjury, I declare that I am an individual care provider receiving payments under a state Medicaid Home and Community-Based Services waiver program for care I provide to ___________________ who lives in my home under the care recipient’s plan of care.

Signed: __________ Date: __________

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I'd recommend that you read the entire Q&A (linked above, here) ... a very good and typically straightforward resource from IRS

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Lane

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