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Nancy and Jason Dreyer have provided 24-hour care for their 35-year old son, John, who is severely handicapped and was placed in the taxpayer's home by the Board of Developmental Disabilities by local authorities. Nancy is certified as a "certified provider" to care for her son and is his legal guardian since he turned 18 years old. To compensate her for the care she provided, Nancy received payments of $700 per month from the state during 2014. This money provided by the state is funded by a Medicaid program that allows individuals to live at home or in a community-based living rather than be institutionalized. The Dreyers would like to know whether they should include the money in taxable income for the year.
Do a research memorandum discussing the facts, issue, conclusion and detailed discussion which would include your three primary sources
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