topic calculating taxable part of the Social Security benefit when you have also Medicaid waiver payments in Get your taxes done using TurboTax

calculating taxable part of the Social Security benefit when you have also Medicaid waiver payments

user17539892623 — Thu, 14 Aug 2025 20:09:16 GMT

I am a 70 year old woman caring for her disabled adult son. I received nontaxable Medicaid waiver payments according to Notice 2014-7 and also SS benefit and some interest from retirement accounts.

My question is regarding the Social Security benefit Worksheet: when you calculate the taxable part of social security benefit, do you have to add in line 3 of the worksheet the nontaxable Medicaid waiver payment?

I know the Medicaid waiver payment is not added to the adjusted income, but taxable SS benefit is and it is not clear to me if I should add or not the Medicaid payment to the other sources of income (line 3= lines 1z+2b+3b+4b+5b+7+8), since line 8 is negative income showing the Medicaid nontaxable payments.

I know it is not a common situation/interest, but for me it is a lot of time consuming with no result until now.

Thank you,

Re: calculating taxable part of the Social Security benefit when you have also Medicaid waiver payments

Mike9241 — Fri, 15 Aug 2025 05:56:02 GMT

Combine the amounts from Form 1040 or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, and 8

they are not included because they are not taxable and thus will not show up on any of these lines.

Re: calculating taxable part of the Social Security benefit when you have also Medicaid waiver payments

user17539892623 — Fri, 15 Aug 2025 18:27:19 GMT

Thank you, I thought so, and common sense says so. I just couldn't find anything related to this topic online (taxable SSA and Medicaid payments), and I have to amend my returns for previous years to reflect the nontaxable payments. I want to be sure I got it right. Thank you, have a good week