Deductions & credits

Enter your caregiver income using the following steps (do not enter the Form 1099-NEC).

1. Open your TurboTax return > Under Wages and Income scroll to Miscellaneous Income
2. Select Other income not already reported on a Form W-2 or Form 1099 > Start or Revisit
3. Select Yes under Did you receive any other wages > Continue
4. Continue to screen Enter Source of Other Earned Income > Select Select Employee Compensation that was not reported on a W2 
5. This walks you through the Form 8919 - enter the required information as you continue 
6. Select Should have been reported on a W-2 for the dropdown

This will eliminate adding self-employment tax which does not apply.  Keep the 1099-NEC with your tax documents.  (See clarified in later post.)

Follow these steps to remove the income from your tax return.

1. Scroll down the page to the last section titled: Less common Income and click show more;
2. Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
3. Scroll down to the last option titled Other reportable income and select start or edit;
4. When it asks, "Any other reportable income?" say yes then you will make one entry
5. Enter this description: IRS Notice 2014-7 excludable income and enter the W-2 Box 1 amount as a Negative (-) number

When you return to the Wages & Income page, scroll to see the negative income beside Miscellaneous Income, 1099-A, 1099-C; This will remove the income on your return for the IHSS or other payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver program.

​​​​​​​[Edit 02/07/2021 | 5:40 AM PST]