Taxable and difficulty of care don't usually go together although having it count as income in order to claim credit is important. I am gong to assume you are looking for income for credit rather than taxable. Two step process:
1. Enter the income as described above by @SharonD007
2. Go to federal deductions and credits. Locate Earned Income Credit. You need to go through and the program will ask if you want to add your Medicaid waiver payment to your income for this credit?
Select yes to boost your income and give you a higher credit.
If your other income is already high, adding this could push you over the limit so you might want to try both ways.
Please correct me, If I am assuming wrong
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