"If these payments are incorrectly paid to you in box 1 of a W-2"
Those are old instructions. The entry changed this year. It is okay to have a W2 for Medicaid Waiver Payments with $0 in box 1 now.
I think you have missed steps #5 and/or #6.
- After entering all your W-2s, you will see the screen, Let’s check for uncommon situations. Next to Nontaxable Medicaid waiver payments, check the box.
- You will enter the amount of Medicaid Waiver Payments into the box asking for the amount of difficulty of care payment you received from IHHS. This will be the same amount reported in Boxes 3 and 5 of your W-2.
Can you verify if you checked the box and how you answered the amount of Medicaid Waiver Payments?
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