I am exempt from taxes on my W-2 income taxes due to the "Difficulty of Care Exemption". In the past using Turbo Tax if any are taxes are withheld in error by payroll they are refunded when I fill out my taxes on Schedule 1. Last year when I got a check, for over $600 for Paid Time Off (PTO) I was issued a 1099 NEC and had to claim it as self-employment. This year the PTO was sent by the Homecare Worker's Benefit Trust on a 1099 MISC. When entering the information as a 1099 MISC I filled the "What is this income for" question as Paid Time Off. The next screen has 'Does anyone of these uncommon situations apply, at the bottom of the list is a place to check the box for "This is a Medicaid Waiver payment that qualifies as a Difficulty of Care payment". I was told when I received my first 1099 NEC that it was taxable because I did not work for the money, and it was taxable. So I assume I still owe taxes and should check the box "None of these apply"? Is this correct?
