Thank you so much MarilynG1! That was super helpful. I entered the value of 38,778 from box 3 to box 1, chose the "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments" in "Uncommon situations" screen, and entered the following in the Medicaid waiver payments screen.
How much of the $38,778 in box 1 is difficulty of care payments?
-- All of it
Did you get any difficulty of care payments ... that aren't in box 1? (This includes payments in other boxes or that aren't on your W-2.)
--- No
