Reference: IRS Notice 2014-7 and IRC Section 131. 

The IRS has recently changed their interpretation of the law in regards to taxpayers receiving payments as in-home care providers for their parents and adult children  through California’s In Home Supportive Services (IHSS) program (administered by the County). In most circumstances, taxpayers can now exclude such income from their taxes.  Furthermore, the IRS will allow the taxpayers to file amendments (to receive refunds) for all “open years.” (Typically three tax years back).

Please contact us immediately if you think you qualify. The amended returns must be timely filed.