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Per the IRS 1040 schedule I instructions

quote

Medicaid waiver payments to care
provider. Certain Medicaid waiver
payments you received for caring for
someone living in your home with you
may be nontaxable. If these payments
were reported to you in box 1 of Form(s)
W-2, include the amount on Form 1040
or 1040-SR, line 1. Also, include on
line 1 any Medicaid waiver payments
you received that you choose to include
in earned income for purposes of claiming
a credit or other tax benefit, even if
you did not receive a Form W-2 reporting
these payments. On line 8, subtract
the nontaxable amount of the payments
from any income on line 8 and enter the
result. If the result is less than zero, enter
it in parentheses. Enter “Notice
2014-7” and the nontaxable amount on
the dotted line next to line 8. For more
information about these payments, see
Pub. 525.

 That is reported on the 1040 schedule 1 line 8 as follows:

Federal Taxes,
Wages and Income,
Choose Jump to Full List -or I'll choose what I work on
Scroll way down to the end - Less Common Income
Click start or update next to the last one "miscellaneous income"
Then the last one for Other Reportable Income
For description enter “Notice 2014-7” . Enter the amount with a minus sign (-) in front of it.

The Schedule 1 line 9 will go on the 1040 line 7a.