Yes, the amount for paid time off is taxable. Enter it in the 1099-MISC section of TurboTax and answer the questions to indicate it's not from working.
See this IRS webpage regarding Medicaid waiver payments, in the Q and A section:
Q8. I am an individual care provider, and I receive vacation pay from the state, as well as Medicaid waiver payments for the care that I provide to a disabled individual living in my home under the individual's plan of care. May I exclude the vacation pay from gross income?
A8. No. The only amounts excludable from gross income under Notice 2014-7 are payments for the care of the disabled individual.
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