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.
The tax on the investment income in excess of $1,700 (may change after 2007) of a child under age 18, based on the parents’ marginal tax rate and computed on Form 8615.