If you are referring to Medicaid waiver payments, review the TurboTax Help article How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax? for instructions.
To determine if you want to include this income in for your Earned Income Tax Credit, when you get to that section, you can elect to add the income or exclude it. Try both ways to determine which way gives you the greater EIC.
For more information, refer to the IRS website Certain Medicaid Waiver Payments May Be Excludable From Income.
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