The California Department of Social Services (CDSS) has announced that it will allow IHSS providers to self-certify that they live in the same home as the IHSS recipient for purposes of federal income taxes.
Internal Revenue Service Notice 2014-7 states that wages for an IHSS provider who lives in the same home as the recipient are not considered gross income for purposes of federal income taxes. CDSS will allow self-certification that the IHSS provider lives with the recipient by submitting the SOC 2298 form. Providers will only need to submit the form once. If the living situation changes, the provider will need to submit the SOC 2299 form.
Wages will continue to be included as federally taxable income until the SOC 2298 form is submitted and processed. CDSS Provider Bulletin, Live-In Provider Self Certification Information.