Vanessa A
Expert Alumni

Self employed

 If your income falls under the Difficulty of Care, as you walk through the steps of entering the 1099-NEC, you will be asked if one of these uncommon situations apply?  Select this income is a Medicaid waiver payment that qualifies as a difficulty of care payment.  TurboTax will automatically enter this as a negative number on line 8s of Schedule 1.  

 

You do not need to remove it in the Misc Income section as TurboTax is doing it for you when you select that is it a Difficulty of Care Payment.  If you do, you would be under-reporting your income. 

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