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Deductions & credits
Thank you for taking the time to respond. It does appear that the instructions are different for year 2021 vs 2022. For 2021, I was able to use these instructions to allow the EIC to be recognized while 'backing' out the income otherwise.
- Log into TurboTax and click on any topic to continue
- Click on Federal from the menu on the left-hand side and then click on Wages & Income at the top
- Click Edit/Add next to Job (W-2) and then click on Add a W-2
- If you received a W-2 for your Medicaid Waiver Payments, enter the information as reported on your W-2. Enter the amount you received for Medicaid Waiver Payments in Box 1 (even if this amount is not reported in box 1 of your W-2.) If you did not receive a W-2, per IRS Form 1040 Instructions, you may still enter the amount of Medicaid Waiver Payments in Box 1 for the purpose of claiming the credit.
- Continue through the screens until you get back to "Wages and Income" section and then scroll down to Less Common Income and click on Show More
- Click on Start or Revisit next to Miscellaneous Income and then click on Start next to Other Reportable Income and select "Yes"
- In the "Description" section, enter "IRS Notice 2014-7 excludable income" and in the "Amount" section, enter the W-2 box 1 amount (or amount of Medicaid Waiver Payments) as a negative (-) number
I may have read Step 4 a few times!
Have a great rest of your tax season.
‎April 11, 2023
12:30 PM