I appreciate your diligence @kgryting! I reviewed your token file again and I can now see your two qualifying dependents for M1WFC purposes.
In TurboTax, on Schedule M1WFC the Total Earned Income (Line 1) flows from the federal Earned Income Credit Worksheet, line 2c PLUS Earned Income Smart Worksheet, line A. So this includes your reported nontaxable Medicaid Waiver payments, plus your net self-employment income. These two amounts together put you over the income limits for the Working Family Credit. ‘
As you correctly noted, the MN Working Families Credit, Line 1 page instructions say to enter, “Line 1z of federal Form 1040 or 1040-SR. Include any Medicaid Waiver Payments you received that are not already included on line 1z of Form 1040.” However, line 8 of the M1WFC Line 1 instructions, also requires you to include your self-employment income. See the Worksheet for Earned Income, page 3, here. This is what’s pushing you over the limit to qualify.
I assume that you didn't include your net self-employment income when you completed the M1WFC, which would have resulted in you qualifying for about $1,200. Let me know if my assumption is incorrect, and provide some additional information about the calculations that you made by hand. If you’d prefer to discuss this in a private conversation, you may also contact us directly here.
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