Partners in Community Supports (PICS)

[zeros]

Had a client come in today and she lives with a challenged person and receives compensation in the form of a W-2. Its called "Partners in Community Supports". It allows the one with the w-2 to subtract the gross amount off on line 21 and mention "2014-7. Has anybody ever heard of this and question number #2, would this have to be added back on the state return? It also allows to go back and amend 3 years back.

[Lion]

Do you mean Rev Proc 2014-07? If so, it's all about dependent care. Also, you'll have to let us know what state return and if that state "couples" with federal regulations or not.

[Roland Slugg]

Sigh.

Partners in Community Supports is a subsidiary of Lutheran Social Service of Minnesota. Wages reported on a W-2 to someone who works/worked there are taxable just like any other.

[zeros]

Minnesota

Do you mean Rev Proc 2014-07? If so, it's all about dependent care. Also, you'll have to let us know what state return and if that state "couples" with federal regulations or not.

The state involved is Minnesota. Not sure if Minnesota accepts this arrangement.

[Lion]

You haven't even convinced me the feds accept this arrangement. Your only cite has to do with dependent care and not the Lutheran Church. Please provide some substantial authority for thinking a W-2 is not taxable. Is the W-2 from this PICS? The Lutheran Church? From who? Why are they issuing a W-2 if it's not taxable? Please provide more details.