I am an in home health supportive service worker, i moved in with a client i take care of , and was told that I would not have to pay taxes, should i amend?
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sacbyrd
New Member

I am an in home health supportive service worker, i moved in with a client i take care of , and was told that I would not have to pay taxes, should i amend?

I just want to know if I amend my return, will I get a larger refund?

4 Replies
Vanessa
Level 3

I am an in home health supportive service worker, i moved in with a client i take care of , and was told that I would not have to pay taxes, should i amend?

Who told you, you wouldn't have to pay taxes?  and why?
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sacbyrd
New Member

I am an in home health supportive service worker, i moved in with a client i take care of , and was told that I would not have to pay taxes, should i amend?

I was told by my clients social worker from i.hhss
sacbyrd
New Member

I am an in home health supportive service worker, i moved in with a client i take care of , and was told that I would not have to pay taxes, should i amend?

she didnt specify why i would get the tax break but was she wrong?
Coleen3
Intuit Alumni

I am an in home health supportive service worker, i moved in with a client i take care of , and was told that I would not have to pay taxes, should i amend?

Yes, TurboTax can exempt income under Notice 2014-7 per the IRS instructions. This Notice provides that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver (Medicaid waiver) program, are difficulty of care payments and excludable as income. 

If these payments are paid to you in box 1 of form W-2 (they should not), first try to get a corrected Form W-2 from the payer. If you cannot get a corrected Form W-2, follow these steps: 

Do not enter the W-2 in the Wages & Salaries topic. Instead enter it as Other Reportable Income under the Miscellaneous Income section. Take the following steps: 

Sign in to TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer);

Click on Federal Taxes at the top of the screen;

At the bottom of Your Income box pick the option in blue to help me add other income, then jump to full list;

Scroll down the page to the last section titled: Less common Income and click show more;

Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;

Scroll down to the last option titled Other reportable income and select start or edit;

When it asks, "Any other reportable income?" say yes then you will make two entries:

Your first entry description would be W-2 EIN # (enter EIN number from W-2) Box 1 Medicaid Waiver Payments, and enter the Box 1 amount as a positive number.

Next you click "Add Another Miscellaneous Income Item," and enter this description: IRS Notice 2014-7 excludable income and enter the W-2 Box 1 amount as a Negative (-) number. 

This both shows and explains removing the W-2 income, placing a zero on Line 21 of your Form 1040. 

If your W-2 has federal or state taxes withheld, you can enter these amounts in the Deductions & Credits section under Other Income Taxes as Withholding not already entered on W-2.

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