KrisD15
Expert Alumni

Get your taxes done using TurboTax

The instructions for reporting nontaxable Medicaid Wavier Payments have been updated for Tax Year 2023. 

There is no longer a need to enter the negative adjustment. 

  • Wages & Income
  • Less Common Income
  • Miscellaneous Income, 1099-A, 1099-C  
  • START (or Update)
  • Other income not already reported on a Form W-2 or Form 1099 
  • START (or Update) 
  • Select "YES" to Other Wages Received
  • CONTINUE
  • Continue through "Wages Earned as a Household Employee" and "Sick or Disability Pay" 
  • Next screen is "Certain nontaxable Medicaid wavier payments not reported on Form W-2 or 1099"
  • Enter the TOTAL amount on this screen and CONTINUE 

 

 

For California, again the option is all or none of the income. 

It is possible that claiming the income on your California return would result in a credit. 

 

Link to CA EITC calculator

 

 

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