Submitted By: Mary
Answered: May 13, 2014 8:30 am

I received payments from my state as a personal support worker for my child who has cerebral palsy. It was reported on a W-2 form. Am I taxable on this?

The payments are taxable wages to you; effectively, you are an employee of your state.

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Tax Glossary

Lump-sum distribution

Payments within one tax year of the entire amount due to a participant in a qualified retirement plan. Qualifying lump sums may be directly rolled over tax free, or, in some cases, are eligible for current tax under a favorable averaging method.

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