Question

tax-exempt Medicaid waiver payments from IHSS in TurboTax for the state of Kansas

Forum|Forum|1 year ago
March 7, 2025
1 reply
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Federal Form 1040-SR handles tax-exempt Medicaid payments from IHSS properly by subtracting the amount of exempt income on line 8 (Year 2024). Is this also tax-exempt for Kansas state tax as well? If it is taxable, where does the amount get added back in?

V

Vanessa A

No. It is not taxable by the state of Kansas.

"Under the terms of IRS Notice 2014-7, and the Questions and Answers which explain it, certain Medicaid Waiver payments are not subject to federal income tax withholding. As a result, in accordance with Kansas law, these payments are not subject to Kansas income tax withholding." NO WITHHOLDING ON CERTAIN MEDICAID WAIVER PAYMENTS

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