It's called "Difficulty of Care Income Exclusion". Direct Care Workers living with the Participants they serve may get a tax break.
Section 131 of the Internal Revenue Code creates an exception to income tax rules for certain income received for providing Medicaid home and community-based services. This waiver program gives tax exemptions to caregivers for some of the income they receive from Medicaid and state agencies if they meet certain criteria.
Learn more about this tax exemption:
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