notice 2014-7

last year i worked as a live in caregiver. my w2 in box 1 the amount is same as my wage while it should be 0.

I am wandering for my tax report do i need a separate form to do notice 2014-7 while i am reporting my tax return? looking forward for your answer.

thanks

1769

Expert Alumni

Feb 5, 2026 7:05:34 PM

Enter the W-2 as it is reported and continue
You will get to a screen that says
"Let's check for other situations"
SELECT "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments"
Continue and the program will ask how much of the income reported in Box 1 is difficulty of care payments

The income will show on your tax Return Form 1040 line 1a and may be applied to your Earned Income Credit (if applicable)

The income is then subtracted on your Schedule 1 line 8s which flows to your Tax Return 1040 line 8 so that you are not taxed on it.