- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
My wife receives a 1099 misc from the VA for assisting me. The money is suposed to be tax exempt from federal taxes. Don't know how or where to input that info.
Topics:
April 7, 2020
10:38 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
I suspect that you are asking about ‘difficulty of care’ payments. Per IRS Notice 2014-7, payments from a state Medicaid Home and Community-Based Services program are specifically excluded from gross income for income tax purposes.
IRS Notice 2014-7 can be found at this link. Click on the hyperlink Notice 2014-7 in the center of the page.
The TurboTax Help below explains how the income is reported then reversed by making two entries on the IRS 1040 tax return.
Make the entries under Federal / Income & expenses / Your Income and expenses / Less common income as outlined in this TurboTax Help.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
April 7, 2020
11:19 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Thank you! It wasn't what I was looking for but it lead me to an IRS publication that was.
April 10, 2020
5:37 PM