CatinaT1,
Thank you for your further instruction! Yes, I did check the box for Nontaxable Medicaid waiver payments and entered the amount of W2 box of 3 and 5 into the box asking for the amount of difficulty of care payment I received from IHHS. However, when I get to the Earned Income Credit section under the Deductions and Credits portion, I was not asked if I want to add my Medicaid waiver payment to my income for this credit. It said I don't qualify for this credit. I guess this credit is not for everyone, right? If that is the case, it's okay.
Now we are back to the issue of unable to e-file with box 1 having 0 amount. It's still the case for me this year. Following other people's suggestion, I entered $1 in box 1. This modifies the window for Let's Check your Medicaid waiver payments after checking the box for Nontaxable Medicaid waiver payments. It has a question "How much of the 1.00 in box 1 is difficulty of care payments?" with three choices: All of it, None of it, and Some of it. I selected None of it. I then entered the amount W2 box of 3 and 5 into the box asking for the total amount of difficulty of care payments I received. By doing so, the unable to e-file error is gone, allowing me to continue with e-file process. Could you please confirm this is a good way to get it around? Thank you very much!!!
