Do you care for a relative or someone else and receive Medicaid waiver payments (MWPs) as compensation? These payments are generally tax-exempt. For you to exclude MWPs from income, the payments must be issued by your state’s MWP program, you need to live in the home with the Medicaid patient and you must not care for more than five or 10 patients (depending on their age) at a time. Even though MWPs are usually excluded from taxable income, you may receive a Form W-2 or Form 1099 reflecting the payments. Contact us for help reporting this income or view the IRS’s FAQs (https://bit.ly/4eI8zg6 ) for more information.
