Do I need to pay taxes on overtime IHSS hours?

If you are a parent provider for your child who receives IHSS, you will receive a W2 in the mail indicating how much you were paid for the year. Beginning in the 2025 tax year, overtime wages will be shown on your W2 in Box 14 under the code "QUAL OT."

If you are a live-in provider for your child, you do NOT owe income tax on your IHSS earnings, not for regular hours or overtime hours.

IHSS providers who do not live with their recipients may be able to claim a deduction for income taxes on overtime pay (according to Public Law 119-21 section 70202). You may wish to consult your tax professional.

For more information about taxes and deductions, see this article.