Get your taxes done using TurboTax

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.   

I assume you want to claim the income for Earned Income Credit purposes. I would try both with and without this income to see the better outcome.

Since you do not have information on a W2, here is how you will enter it.:   

1. Click on Wages and Income at the top of the screen 
2. Scroll down to "Less Common Income";   
3. click on Show More;  
4. click on Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C;  
5. click on Start or Revisit next to Other income not already reported on a Form W-2 or Form 1099;  
6. Did you receive other wages, say yes;  
7. Wages earned as a household employee, leave blank and click continue;  
8. Sick or disability pay, leave blank and click continue;   
9. The next question asks about non-taxable Medicaid waiver payments; enter the amount here,  
10. Click Continue.   

For more information, refer to IRS Notice 2014–7, 20144 I.R.B. 445 and the IRS FAQs.