Hi,
Is your question specific to Medicare Waiver / Difficulty of Care payments? If so, this is what I did (we meet the requirements of Difficulty of Care payments and do not receive a W-2).
Go to the ‘Your 2022 Income Summary / Less Common Income / Miscellaneous Income, 1099-A, 1099-C’ page and click ‘Start’. On the next page, select the first link ‘Other income not already reported on a Form W-2 or Form 1099’ and answer the questions [Yes / Continue / Continue]. On the following page, your client can enter whether he/she wants that non W-2 income to count as earned income to trigger the EIC. From what the TT tax expert told me, it must either be 0% or 100% of the income in question, not something in-between.
I have done it both ways and it changes the amount of the EIC. If I put in $0, I get the full EIC amount. If I put in the full non W-2 amount, the EIC goes to $0. This has to do with the EIC income limits for your client’s filing status.
Hope this helps.
