dmoses2
Returning Member

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.

 

https://ttlc.intuit.com/community/after-you-file/discussion/how-and-where-to-post-claim-irs-notice-2...

 

  1. Log into TurboTax and click on any topic to continue
  2. Click on Federal from the menu on the left-hand side and then click on Wages & Income at the top
  3. Click Edit/Add next to Job (W-2) and then click on Add a W-2
  4. 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.
  5. 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
  6. Click on Start or Revisit next to Miscellaneous Income and then click on Start next to Other Reportable Income and select "Yes"
  7. 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.