Medicaid Home and Community-Based Services Waiver Programs

  1. What is a Medicaid home and community-based services waiver program?
  2. What does it mean to be self-directed?
  3. What are the federal tax consequences of amounts received by a person who is hired by the participant to provide care and supportive services?
  4. Does the federal tax treatment of the Medicaid waiver payments apply for Wisconsin?
  5. I previously reported Medicaid waiver payments as taxable income on my Wisconsin income tax return. May I file amended returns to exclude such income?
  6. Do I have to adjust any credits if I file an amended return to remove Medicaid waiver payments from income?

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of January 24, 2024: secs. 71.01, 71.07, 71.52, 71.53, 71.54 and 71.60, Wis. Stats., secs. Tax 2.12 and 14.03, Wis. Adm. Code, and sec. 131, IRC.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

​Contact Us​

MS 5-77
Wisconsin Department of Revenue
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2486
Fax: (608) 267-1030
Email:DORIncome@wisconsin.gov

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100168

January 24, 2024