[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-303527-105":3,"detail-sidebar-cat-1-en-105":84,"doc-detail-303527-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":77,"head_meta":79,"extra_data":81,"updated_unix":83},105,"en","irs-notice-2014-7-information-guide-tax-exclusion-for-medicaid-waiver-wages","IRS Notice 2014-7 Information Guide - Tax Exclusion for Medicaid Waiver Wages","","This document provides critical guidance regarding IRS Notice 2014-7, which allows certain wages earned by employees providing services under Medicaid Waiver programs to be excluded from federal income tax. The content details the eligibility requirements, specifically focusing on employees residing with the individual receiving care, and notes potential applications to programs like PCA Choice or Consumer Support Grant. It addresses key implications of claiming this exclusion, such as the potential impact on Adjusted Gross Income (AGI) and associated benefits, while clarifying that it does not apply to Paid Time Off. Furthermore, it discusses the possibility of filing amended returns for previous tax years and updates regarding the Earned Income Tax Credit (EITC). Accra provides professional contact information for employees seeking verification of waiver-funded wages but explicitly states that its staff are not tax professionals and cannot provide personal tax advice. Readers are encouraged to consult official IRS resources for comprehensive tax compliance details.",{"@graph":14,"@context":76},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/general/","General",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/irs-notice-2014-7-information-guide-tax-exclusion-for-medicaid-waiver-wages/303527/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/irs-notice-2014-7-information-guide-tax-exclusion-for-medicaid-waiver-wages/303527.png","ImageObject",442,249,{"name":42,"@type":43},"Sophia Brooks","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-09-20","2026-09-19",true,{"@type":52,"interactionType":53,"userInteractionCount":30},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68,72],{"name":59,"@type":60,"acceptedAnswer":61},"Who is eligible for the tax exclusion under IRS Notice 2014-7?","Question",{"text":62,"@type":63},"The exclusion applies primarily to employees who provide services to individuals on a Medicaid Waiver and live full-time in the home with the person receiving care.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"Does IRS Notice 2014-7 apply to Paid Time Off (PTO) wages?",{"text":67,"@type":63},"No, the tax exclusion provided under IRS Notice 2014-7 does not apply to wages earned as Paid Time Off.",{"name":69,"@type":60,"acceptedAnswer":70},"Can an employee file for this exclusion retroactively?",{"text":71,"@type":63},"Yes, employees may file an amended tax return for previous tax years to potentially benefit from the provisions of IRS Notice 2014-7.",{"name":73,"@type":60,"acceptedAnswer":74},"How does claiming this exclusion affect eligibility for other benefits?",{"text":75,"@type":63},"Reducing your Adjusted Gross Income (AGI) by claiming this exclusion may impact eligibility for benefits or insurance programs that are calculated based on a person’s AGI, such as TEFRA payments or health insurance.","https://schema.org",{"og:url":32,"og:type":78,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":80,"canonical":32},"index,follow",{"doc_id":82,"site_id":7},303527,1789804773,{"code":4,"msg":85,"data":86},"success",[87,92,97,102,107,112,117,122,127],{"id":88,"doc_module":22,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},11,"Presentations",90,"presentations",{"id":93,"doc_module":22,"doc_module_name":25,"category_name":94,"show_sort_weight":95,"slug":96},12,"Resumes",80,"resumes",{"id":98,"doc_module":22,"doc_module_name":25,"category_name":99,"show_sort_weight":100,"slug":101},14,"Invoices",70,"invoices",{"id":103,"doc_module":22,"doc_module_name":25,"category_name":104,"show_sort_weight":105,"slug":106},15,"Posters",60,"posters",{"id":108,"doc_module":22,"doc_module_name":25,"category_name":109,"show_sort_weight":110,"slug":111},16,"Social 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living fulltime in the home with the Medicaid waiver person they provide services to.  \n~~􀁸 ~~ It may also apply to other Medicaid programs similar to waiver funded programs such as PCA Choice or Consumer Support Grant. However, the IRS makes the determination and not Accra.  \nFor additional information visit the IRS website:  \n[http://www.irs.gov/irb/2014-4_IRB/ar06.html](http://www.irs.gov/irb/2014-4_IRB/ar06.html)  \n[http://www.irs.gov/Individuals/Certain-Medicaid-Waiver-Payments-May-Be-Excludable-From](http://www.irs.gov/Individuals/Certain-Medicaid-Waiver-Payments-May-Be-Excludable-From)Income  \nOther 2014-7 Implications:  \n􀁸 Claiming 2014-7 and reducing the Adjusted Gross Income (AGI) on tax form 1040 could have other implications if the employee receives benefits or insurance calculated on a person’s AGI like TEFRA payments for MA or health insurance eligibility.  \n􀁸 2014-7 does not apply to Paid Time Off wages.  \n􀁸 An employees may also file an amended tax return for previous tax years to benefit from 2014-7.  \n􀁸 MN Revenue applies 2014-7 to state income tax if an individual claims the exclusion. Accra does not pursue this for employees and Accra staff are not tax professionals.  \nIf an employee or tax preparer wants proof that the wages paid were waiver funded, Accra can provide this.  \n*Please note in May 2019 a federal tax court ruled difficulty of care payments (2014-7) can be counted as earned income for the purposes of the Earned Income Tax Credit (EITC) .","cbCailVaUhNm2uWj","https://ap.wps.com/l/cbCailVaUhNm2uWj","pdf",659229,"English","# Understanding IRS Notice 2014-7\n## Eligibility and Application\n## Tax Implications and Considerations\n## Support and Additional Resources","[{\"question\":\"Who is eligible for the tax exclusion under IRS Notice 2014-7?\",\"answer\":\"The exclusion applies primarily to employees who provide services to individuals on a Medicaid Waiver and live full-time in the home with the person receiving care.\"},{\"question\":\"Does IRS Notice 2014-7 apply to Paid Time Off (PTO) wages?\",\"answer\":\"No, the tax exclusion provided under IRS Notice 2014-7 does not apply to wages earned as Paid Time Off.\"},{\"question\":\"Can an employee file for this exclusion retroactively?\",\"answer\":\"Yes, employees may file an amended tax return for previous tax years to potentially benefit from the provisions of IRS Notice 2014-7.\"},{\"question\":\"How does claiming this exclusion affect eligibility for other benefits?\",\"answer\":\"Reducing your Adjusted Gross Income (AGI) by claiming this exclusion may impact eligibility for benefits or insurance programs that are calculated based on a person’s AGI, such as TEFRA payments or health insurance.\"}]","IRS Notice 2014-7 Information Guide - Tax Exclusion for Medicaid Waiver Wages | PDF"]