North Star Oregon

For many families in Oregon, the years between ages 18 and 21 bring one of the biggest transitions in their child's life — the move from school-based supports to the adult disability services system. After more than a decade of IEP meetings, classroom routines, and the predictable rhythm of the school year, the road ahead can feel uncertain. The structures change. The acronyms change. The people you've trusted for years are no longer part of your weekly life. If your son or daughter is approaching this transition, take a deep breath. You are not behind, and you are not alone. With the right preparation and the right partners, the transition from school to adult services can become an exciting next chapter, full of new opportunities for growth, connection, and independence. This guide walks Oregon families through what to expect, what to plan for, and how to make the most of the transition years. When Does the Transition Begin? In Oregon, transition planning is required to begin by age 16 as part of your child's IEP — but most families benefit from starting the conversation even earlier. The reason is simple: the adult system works very differently from the school system, and there is much to learn. In school, services are an entitlement. Once a student qualifies, supports are planned and delivered automatically through the district. In the adult world, services are eligibility-based and self-directed. Families need to apply, choose providers, and actively coordinate care. The shift from "the school handles it" to "we drive it" can be jarring without preparation. A good rule of thumb: by age 14, start learning the language. By age 16, begin formal planning. By age 18, have an adult services intake completed. By age 21, the school exit should feel like a handoff — not a cliff. Step 1: Connect with Your Local CDDP or Brokerage Adult disability services in Oregon are coordinated through two types of agencies depending on the level of support an individual needs: Community Developmental Disability Programs (CDDPs) serve individuals who need comprehensive support and are typically county-based. They handle eligibility determination, service coordination, and case management for both children and adults with intellectual and developmental disabilities. Support Service Brokerages serve adults (18+) who live in their own home or family home and need less intensive supports. Brokerages help individuals direct their own services and manage their support budgets. If your child is already receiving services through a CDDP as a minor, you likely have a Services Coordinator who will continue to work with you through the transition. If not, contact your county's CDDP to request an intake. The earlier this happens, the more options you'll have when planning begins in earnest. Step 2: Understand the Funding — K Plan and Waivers Adult services in Oregon are primarily funded through Medicaid, specifically the Community First Choice State Plan (also known as the K Plan) and the 1915(c) waivers. These programs pay for in-home attendant care, day support activities, employment supports, residential services, and more. To access these benefits, an individual must: Be enrolled in the Oregon Health Plan (Medicaid) Be determined eligible for I/DD services through the local CDDP Have a current Individual Support Plan (ISP) that identifies needed services Be assigned an annual budget through the Oregon Needs Assessment (ONA) The transition years are the perfect time to make sure all of this paperwork is in order. Medicaid eligibility for individuals with disabilities does not automatically follow them into adulthood — at age 18, many young adults must reapply as their own household, even if they still live with parents. Missing this step can cause gaps in coverage right when they're needed most. Step 3: Build the Adult ISP The Individual Support Plan, or ISP, is the heart of adult disability services in Oregon. It replaces the IEP as the central planning document for your son or daughter's life. Where the IEP focused on educational goals, the ISP focuses on the whole person — what they want their life to look like, where they want to spend their days, who they want to be around, and what support they need to make it happen. The ISP is built through a person-centered planning process led by the Services Coordinator, with input from the individual, family members, providers, and anyone else the individual wants involved. The plan typically covers: Daily routines and preferences Goals for community participation, employment, and skill development Specific services authorized (in-home attendant care hours, day support, employment, etc.) Health and safety considerations Risk assessments and emergency plans Families often find the first ISP meeting overwhelming. Our advice: come prepared with a vision. Even a simple list of "things our family member loves," "things they want to try," and "things they need help with" can transform the meeting from a checklist exercise into a meaningful planning conversation. Step 4: Choose the Right Service Providers Once your loved one is eligible and the ISP is in place, it's time to choose the providers who will deliver those services. This is one of the most important decisions families will make, and it deserves real time and thought. For young adults aging out of school, two types of services tend to be most relevant in the early years: In-Home Attendant Care provides one-on-one support in the home and community. This service helps with personal care, daily living skills, supervision, and community participation. For families where a parent has been the primary caregiver, attendant care can also be a way to formally compensate that work — Oregon allows parent-caregivers to be hired as direct-employment staff in many situations. Day Support Activities (DSA) provide structured, community-based programming during the day. Think of it as the adult-life equivalent of a school day — but designed around interests, skills, and community inclusion rather than academics. Good DSA programs offer art, recreation, volunteering, fitness, social outings, and skill-building tailored to each participant. When you're evaluating providers, ask: Are your staff direct W-2 employees, or contractors? (W-2 models tend to mean better training, accountability, and continuity.) How do you involve individuals and families in planning activities? What does a typical day look like in your DSA program? How do you handle behavior support, medical needs, and emergencies? What is your staff turnover rate? Can we visit and observe before enrolling? Trust your instincts. The best provider is the one whose values, communication style, and program design match what your family member actually needs. Step 5: Plan for Life Beyond Services Services are a crucial piece of the puzzle, but they are not the whole picture. The transition years are also a chance to think bigger about adult life: Health care: Has your loved one transitioned from a pediatrician to an adult primary care provider? Are specialists in place? Legal matters: Do you need to consider guardianship, supported decision-making, or a power of attorney? An attorney experienced in disability law can help you choose the least restrictive option. Financial planning: Look into ABLE accounts, Special Needs Trusts, and Social Security benefits like SSI. These tools can protect eligibility while building financial security. Housing: Where will your loved one live in five years? Ten? Even if the answer is "with us, for now," it's worth starting the conversation about long-term options. Connection: What does community look like for them? Friends, faith communities, hobby groups, teams — these matter as much as any formal service. You Don't Have to Figure This Out Alone The transition from school to adult services is one of the most significant moments in a family's journey, and it's also one of the most well-supported when you know where to look. Services Coordinators, brokerage personal agents, advocacy organizations, and experienced providers are all part of the network that exists to help families navigate this season. At North Star Oregon, we walk alongside families across the Willamette Valley as their loved ones step into adult life. Whether you need in-home attendant care, day support activities in Albany, Corvallis, Eugene, Springfield, Salem, or Tangent, or simply a friendly conversation about what comes next, we're here to help. Ready to Talk About What's Next? If your son or daughter is approaching the transition years — or already past them and looking for the right adult services partner — we'd love to connect. Reach out to North Star Oregon to learn more about our In-Home Attendant Care and Day Support Activities programs, and how we can support your family's next chapter.

If you're a parent caring for your adult child with intellectual or developmental disabilities in your home, there's a tax provision you need to know about. IRS Notice 2014-7 allows parents employed as in-home caregivers to exclude qualifying Medicaid waiver payments from their federal income taxes—potentially saving thousands of dollars per year. At North Star Oregon, we're committed to helping our parent-employees understand and access this benefit. Here's what you need to know. What Is IRS Notice 2014-7? In 2014, the IRS extended "difficulty of care" tax treatment—originally designed for foster parents—to caregivers providing services under Medicaid Home and Community-Based Services waiver programs. This means parents who work for disability services providers like North Star can exclude certain payments from their taxable income. The key word is certain. Not all services qualify, and the rules are specific. Which Services Qualify? In-home Attendant Care services qualify when you provide care to your child in the home you share together. This includes: Assistance with bathing, dressing, toileting, and mobility Meal preparation and feeding assistance Medication reminders Light housekeeping in shared living areas Shopping and transportation for medical appointments or essential needs Other activities of daily living performed in the shared home The Critical Requirements To qualify for the tax exclusion, you must meet ALL of these conditions: You and your child live together full-time in the same home Your child receives services under Oregon's Medicaid waiver program (K Plan or 1915(c) waivers through ODDS) You provide in-home attendant care services as described in their plan of care You're paid through the Medicaid waiver program for these specific services The "same home" requirement is strict. This means: You share the same primary residence You don't maintain a separate home where you spend weekends or holidays You can document the shared living arrangement with matching addresses on IDs, utility bills, etc. What This Means for Your Taxes The Income Tax Exclusion Qualifying Medicaid waiver payments are excluded from federal gross income. This means you don't pay federal income tax on them. However, you still pay Social Security and Medicare taxes (FICA). When North Star is your employer (as opposed to a consumer-directed arrangement), FICA applies even to excludable income. This is actually beneficial—it means you're earning Social Security credits toward your retirement benefits. Your W-2 Will Look Different Your W-2 from North Star will show: Box 1 (Wages): Only your taxable wages (training, PTO, any non-qualifying services)—excludable attendant care is removed Box 12 Code II: The amount of excluded Medicaid waiver payments Boxes 3 & 5 (Social Security/Medicare wages): ALL your wages including excludable payments Boxes 4 & 6: The FICA taxes actually withheld The fact that Box 1 is smaller than Boxes 3/5 is correct and expected. The Earned Income Tax Credit Opportunity Here's where it gets interesting. A 2019 Tax Court case (Feigh v. Commissioner) ruled that you can have your cake and eat it too: the IRS now allows you to count excluded income toward earned income tax credits (EITC) and additional child tax credit (ACTC) while still excluding it from taxable income. This "double benefit" can be worth thousands of dollars for qualifying families. You'll want to work with a tax professional to claim this correctly. What You Need to Do If you think you qualify, here's your action plan: Step 1: Verify Your Eligibility Do you and your child live together full-time? Does your child receive services under Oregon's Medicaid waiver program? Are you providing in-home attendant care (not DSA)? Step 2: Contact North Star's Payroll Team We'll provide you with: An attestation form to complete under penalties of perjury Documentation requirements (matching addresses, etc.) Information about how your W-2 will be adjusted Step 3: Keep Records Maintain proof of shared residence Keep copies of your signed attestation Track which hours are attendant care vs. other services Step 4: Work With a Tax Professional This is complex tax law. We strongly recommend working with a qualified tax preparer who understands Notice 2014-7, especially if you want to claim EITC benefits. What Doesn't Qualify Be clear about what payments cannot be excluded: Any community-based services provided outside your shared home Training hours or administrative time Paid time off or vacation pay Respite care provided outside your shared home Any private payments not from Medicaid waiver programs Common Questions Q: Can I apply this to previous years? A: Yes, you can file amended returns for open tax years (generally the past 3 years). Consult a tax professional. Q: What if my child moves out temporarily? A: You must notify North Star immediately if living arrangements change. The exclusion applies only during periods of shared residence. Q: Does this affect my Social Security retirement benefits? A: No. When North Star is your employer, FICA taxes continue to apply, so you're earning Social Security credits normally. Q: What if I provide multiple types of services to my child? A: We'll track your hours separately. Only in-home attendant care hours qualify for exclusion. Any services provided outside the home or other non-qualifying services remain taxable. Q: Do I still need to report this income anywhere? A: Yes. It appears on your W-2 in Box 12 Code II, and you'll report it on your tax return with an offsetting adjustment on Schedule 1. We believe in supporting the families who provide extraordinary care to their loved ones with disabilities. Helping you access this tax benefit is part of that commitment. If you're a parent-employee providing in-home care to your child and you think you might qualify, please reach out to our payroll team. We're here to help you navigate this process and ensure you receive the tax treatment you're entitled to under the law.