- 4 - IHSS payments were income but, after conferring with petitioners, concluded that the IHSS payments were not considered gross income. In this case, respondent cites Bannon v. Commissioner, 99 T.C. 59 (1992), as controlling. In Bannon, which involved circumstances very similar to those in the present case, in which a taxpayer gave her child round-the-clock total daily care, in excess of the hours listed on the taxpayer’s biweekly timecard and paid for by the IHSS, the Court analyzed the law in detail and stated, id. at 66: Petitioner’s situation is sympathetic. She is to be lauded for the beneficence and compassion she has shown to her disabled daughter. But we cannot grant petitioner the relief she seeks. * * * We hold that petitioner’s receipt of payments under California’s in-home supportive services program did not constitute a welfare benefit to her and is therefore includable in her income for Federal income tax purposes. Although the Court has only previously addressed the classification of IHSS payments as they apply to adult children, California law makes no distinction between adult children and minor children for purposes of IHSS payments. See Miller v. Woods, 148 Cal. App. 3d 862 (1983). Live-in relatives, whether caring for minor or adult children, receive the same level of compensation from IHSS as nonrelated contract workers. Id. at 877. Furthermore, although parents of a minor child are required by California law to volunteer their services to care for thatPage: Previous 1 2 3 4 5 6 7 8 9 Next
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