u/Disastrous-Score-213

I am a full-time caregiver with medicaid waiver income. I don't pay federal tax, but do pay medicaid/social security and state tax. I get a W-2.

I have had a Roth IRA for a few years now with no word from the IRS. I read that my AGI is lower, which lowers my MAGI.

I also read that I might not be able to use that federally non-taxable income for the IRA because the IRS will consider it an excess contribution if I use tax-exempt medicaid waiver income, and could pay 6% penalty every year.

Does anyone have any experience or advice? I've done this for 3 years without issue, but I saw I'll be receiving a letter from the IRS for more information, but it wasn't specific as to what, so I want to get my ducks in a row either way.