It depends.  This income is categorized as a "Medicaid Waiver Payment".  Medicaid Waiver Payments are not taxable (or reportable) if the care you are providing is in the same home where you live.  If it is not in the same home, it is normal income and you enter the W2 in the W2 screen as it is reported to you.

If it is not taxable income, your W2 will probably indicate this by having zeros or blanks in boxes 1, 3, and 5 (California may consider the payments taxable in the state). California follows the Federal Law regarding this provision as well, so the income is also not taxable to the state. 

Therefore, if you have a virtually blank W2 from the provider, you will not enter it into TurboTax at all.  This income is excluded from.  If the W2 looks "normal" (boxes 1, 3, and 5 show amounts, and boxes 2, 4, and 6 show taxes withheld), you will enter the W2 as normal, because the income is included in your income.

For more information, please see this FAQ:  https://ttlc.intuit.com/replies/4360071