Alia Credits are not taxable income to cleaners. However, in most cases, the value of the non-reloadable VISA Incentive cards received as Paid Time Off would usually be considered non-wage taxable income.
To understand how Alia Benefits might affect your taxes, it's helpful to understand some of the behind-the-scenes of how Alia works.
1. When a client makes a contribution on Alia, they are actually buying Alia Credits. Alia Credits cost $1 for 1 Alia Credit. When a client buys 20 Alia Credits, they pay Alia $20.
When a customer makes a contribution on Alia they are not paying wages to the cleaner. Alia does not report nor share any information about contributions outside the Alia program, including reporting to the IRS, because Alia makes no payments directly to cleaners.
2. When a cleaner claims Paid Time Off, she is purchasing a non-reloadable VISA Incentive card with Alia Credits.
When a cleaner receives her Paid Time Off claim in the form of a non-reloadable VISA Incentive card, the value of the VISA Incentive card would likely be considered non-wage taxable income. For example, when a cleaner receives the non-reloadable VISA Incentive card for a day of Paid Time Off, it's likely that the value of the VISA Incentive card, $120, would be considered non-wage taxable income.
Unfortunately, we simply cannot advise you on your taxes. However, the IRS has a great resource on taxable and nontaxable income here.