Tax Reminder for Home Care Providers
ODJFS reports your income from Medicaid claims.
The Ohio Department of Job and Family Services is required to supply a copy of the IRS form 1099 to the Internal Revenue Service (IRS). Tax payments are based on the amount listed on the 1099 form. Each tax season, ODJFS sends 1099 forms to Medicaid providers showing the total Medicaid reimbursements from the previous calendar year. Copies go to the Ohio Department of Taxation and the IRS.
Independent Providers must pay their own taxes. According to Ohio Administrative Code rule 5101:3-12-12 ((c)(4), all independent Ohio Home Care providers (RN, LPN, Aide, or Non-Aide) "...shall be considered independent contractors and shall be responsible for paying their own federal, state, and local taxes and for any other required deductions." As independent contractors, independent Medicaid home-care providers are considered to be self-employed and may be required by law to make payments for other deductions. If you are an independent provider, the following taxes may be due:
You may wish to consult with a tax attorney or an income tax preparation service to make sure you are making all proper payments.
The IRS has the authority to collect federal income tax you owe and to instruct ODJFS to deduct this money from your future Medicaid reimbursement checks.