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These are Medicaid waiver payments, not "wages".  We specifically requested that the State of CA not withhold taxes.  Instead, they refunded taxes in the following year...

 

If we report the entire "Gross" figure as "payments" then I assume we will need to report the refunded tax payments next year as something other than "payments".  How exactly will we need to report those refunded taxes next year?

 

Thanks...