Notice 2014-7 filing and amending

I have an Adult Family Home. I am certified individual/sole proprietor. I have 1 client who lives with me. Started in 2016.  I recieved 1099-misc for years 2017, 2018, 2019. I recieved 1099- NEC for years 2020 and 2021. These payments come from a Medicaid Home and Community Based Services Waiver Program. I have used tubrotax Home and Business software to file since 2017 until now. I recently found out about Difficulty of Care Notice 2014-7, which excludes the payment from gross income.

 

Question #1 is: Do I qualify for this exclusion?

If I do, # 2 : Since I have been doing the business part, do I not do that this year and do just personal? OR do I continue with business and how and where to place the exclusion? 

# 3 :Since I have no reason to reduce my taxes do I just not do the buisness deduction or am I required to

# 4: I will need to know how to amend previous years.