How do I report my Medicaid Waiver Notice 2014-7, Difficulty of Care Payments?

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.

How can I use the income for Earned Income Credit purposes?

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:

1. Federal Section
2. Income (Select My Forms)
3. W-2
4. Medicaid Waiver Payment

Note that if box 1 is blank, enter the Medicaid Waiver Payment in box 1.

To find more information about this, please click Here.