Notice 2014-7: “provides that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver (Medicaid Waiver) program, described in this notice, are difficulty of care payments excludable under § 131 of the Internal Revenue Code.
For more information, visit the IRS website.
This income is excludable on your return but can be used to calculate Earned Income Credit.
If you have a W-2, you will need to report this, by going to:
- Federal Section
- Income (Select My Forms)
- Medicaid Waiver Payment
To find more information about this, please click Here.