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Get your taxes done using TurboTax
This sounds like a Difficulty of Care or Medicaid Waiver payment, which is not taxable income. See Certain Medicaid waiver payments may be excludable from income.
You will want to go back to your 1099-MISC entry and look for the follow up question to indicate that it is a Medicaid Waiver payment and TurboTax will recalculate so you do not pay tax on it. See also How do I enter my tax-exempt Medicaid waiver payments from ...
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5 hours ago