@Yatziryp91 When you enter the W-2 in TurboTax, also enter the amount in box 5 in box 1.
Then make a separate negative entry as follows:
- In Income go to the Less Common Income section and select Start next toMiscellaneous Income, 1099-A, 1099-C.
- On the next screen, select Start next to Other Reportable Income and answer Yes on the next screen. Enter the description IRS Notice 2014-7 excludable income and enter the amount you entered in box 1 amount as a negative (-) number. This places an offset on line 8 of Schedule 1, making the income not taxed, but still eligible for EIC.
