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?

Individual retirement account (IRA)

A retirement account to which up to $4,000 (or $5,000 if you are 50 or over) may be contributed for 2007, but deductions for the contribution are restricted if you are covered by a company retirement plan. Earnings accumulate tax free.