I help CDPAP caregivers who live with their care recipients file correctly, recover overpaid taxes under IRS Notice 2014-7, and claim the credits you are legally entitled to.
The Consumer Directed Personal Assistance Program (CDPAP) allows Medicaid recipients to pick a caregiver of their choice. Under IRS Notice 2014-7, payments received as “difficulty of care” payments may be excluded from your federal and New York State taxable income if you live in the same household as the person you care for.
Please note that not all CDPAP caregivers qualify for this tax treatment; eligibility depends entirely on your specific living arrangements and the facts of your case.
Many agencies withhold taxes from “difficulty of care” payments by default. If you live with your care recipient, this may result in overpayment.
✓ Incorrect Withholding: Your W-2 may show taxable income that should be excluded under IRS Notice 2014-7.
✓ Amended Returns: We can file eligible prior-year tax returns to recover these overpaid funds.
Even when your “difficulty of care” income is excluded from taxable income, you can often elect to treat it as “earned income” for credit purposes.
✓ Earned Income Tax Credit (EITC)
✓ Additional Child Tax Credit (ACTC)
Accurate filing for live-in caregivers receiving difficulty of care payments.
Amending eligible prior-year tax returns to recover taxes incorrectly withheld from exempt income.
Medicaid waiver rules regarding household residency are strict. As a New York CPA (License #139875), I ensure your filings are 100% compliant with IRS and New York State law.
My practice is fully remote, providing friendly, advocacy-based support for live-in caregivers across New York State.
We first confirm that you live with the care recipient and that your payments qualify as difficulty of care income.
Send your documents through my secure document upload process.
Once you review and approve the return, I will electronically file it on your behalf.
Contact me directly to discuss your situation and confirm eligibility.