Hi. I have a question: I receive income as a caregiver for my children. I receive a w2 form with income in Box 1 but this is non taxable in my state. My question is this:
When adding the W2, do I click the box that says "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments" and the do I also add the Notice 2014-7 form with the Negative amount thats in box 1 of my W2? When clicking this box, my tax refund goes up a substantial amount so I wanted to check on this with experts before moving forward.
Thanks!
If you enter an amount in box 1, and also check the box that says Nontaxable Medicaid Waiver Payment, the next question should ask you how much of box 1 is attributed to Medicaid Waiver Payments, and you will put the entire amount of box 1. This should make it non-taxable.
Do I also enter a notice 2014-7 with the negative amount of the Box 1 wages?