Can IHSS Live-In Provider contribute to Roth IRA… 1. w/o filing tax? 2. have to file tax but, not pay tax? 3. have to file and pay tax? 4. cannot contribute at all?

[Chlo3tran]

SOC 2298 - IN-HOME SUPPORTIVE SERVICES (IHSS) PROGRAM AND WAIVER PERSONAL CARE SERVICES (WPCS) PROGRAM LIVE-IN SELF-CERTIFICATION FORM FOR FEDERAL AND STATE TAX WAGE EXCLUSION

[Bsch4477]

IHSS payments can be excluded from taxable income but still count toward a contribution to an IRS. 

[Chlo3tran]

Since Live-In Providers are not required to file tax, do they need to if contributing to Roth IRA?

[Bsch4477]

Depending on your age that income might qualify you for earned income credit so it might be worth filling a return. 

[Chlo3tran]

Do I need to file tax in order to contribute to Roth IRA?

[Bsch4477]

No. 

[Chlo3tran]

I’ve gotten several conflicting answers amongst “expert” tax advisers. Can you tell me where you got the info from and/or have a link that can confirm that I contribute to Roth IRA and continue to NOT file tax on my IHSS income each year? Thank you so much for your help!

[Bsch4477]

This is from a CA IHSS site. 

California workers, whose employers do not offer a retirement plan or are self-employed, now have an opportunity to contribute to an Individual Retirement Account (IRA) they control. CalSavers is a new retirement program designed for all California individuals like IHSS providers who don’t have automatic employment retirement contribution options. The CalSavers Retirement Program offers IHSS providers:

• Ability to contribute to a Roth Individual Retirement Account (IRA) that belongs to the IHSS provider

In terms of having to file any other income comes into play. Some tax software has the user specifically choose to have the IHSS income considered earned income. 

[Chlo3tran]

I plan to open Fidelity Roth IRA. I understand that Live-In Provider has the option to file tax or not. I choose not to. My question is, am I required to file tax if I contribute to Roth IRA?

[Bsch4477]

Not if that’s your only income. 

[MarilynG1]

No, you are not required to file a tax return to contribute to a Roth IRA.

However, you must have a modified adjusted gross income (MAGI) of less than $153,000 in order to contribute for 2023. 

The plan administrator may ask for income documentation if you don't file a tax return. 

Here's more detailed info on Roth IRA Contributions.

@Chlo3tran