Community Integrated Programs

  1. What is a community integrated program?
  2. What does it mean to be self-directed?
  3. What are the tax consequences of amounts received by a person who is hired by the participant to provide care and supportive services?
  4. Can the payments to the service provider be excluded from income as a foster care payment?

  1. What is a community integrated program?

    A community integrated program (CIP) is a self-directed support program to provide home or community-based care for certain older people and adults with disabilities. Sometimes called an IRIS (Include, Respect, I Self-Direct), the program is administered by the Wisconsin Department of Health Services.

  2. What does it mean to be self-directed?

    "Self-directed" means that the participant in the program has increased control over the long-term care, goods, and services purchased and how they are provided. The participant can hire, supervise, and dismiss his/her own workers or purchase services through an agency.

  3. What are the tax consequences of amounts received by a person who is hired by the participant to provide care and supportive services?

    Payments for services provided to a CIP participant are subject to income tax by the service provider regardless of whether the service provider was hired directly by the CIP participant or through an agency. The payments to the service provider are reported on Form W-2 and are subject to Wisconsin income tax withholding.

  4. Can the payments to the service provider be excluded from income as a foster care payment?

    No. To be excluded from income under sec. 131 of the Internal Revenue Code as a foster care payment, the payment must be paid to a foster care provider for caring for a qualified foster individual in the foster care provider's home. A "qualified foster individual" is an individual who is living in a foster family home in which such individual was placed by an agency of a State or a political subdivision thereof, or a qualified foster care placement agency.

    The CIP participant does not meet the definition of a "qualified foster individual" as he or she was not placed in the foster home by an agency of a State or political subdivision thereof, or a qualified foster care placement agency. A CIP participant makes his or her own choice as to where to live. The participant has the freedom to choose a service provider. Therefore, any payments received by the service provider, including any difficulty of care payments, do not qualify for the exclusion for foster care payments.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
P.O. Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2486
Email Additional Questions

Last updated October 23, 2013