Follow the instructions in the Following FAQ: (click on link): https://ttlc.intuit.com/questions/2635384. Scroll down to subheading that says "Do not enter the W2 in the Wages & Salaries topic." Follow all of those instructions. That should enter and back-out the income on each side, and follow the instructions at the bottom so that the taxes withheld are also reported so that you may be refunded.
You do want to have documentation available that the Waiver payments should be excluded because you are caring for the individual in the home where you also live.
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