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:
- Federal Section
- Income (Select My Forms)
- 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.