https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income
refer to Question 11 (Q11)
go to personal > Personal income > miscellaneous income, 1099A, 1099c > Other reportable income > click yes > enter IRS NOTICE 2014-7 as description > then add amount in box 1 as negative amount.
these were the original instructions before turbo tax included medicare waiver payments in the software. I suspect there is an accounting error with the software..
Hope this helps
