topic Difficulty of Care NY in Get your taxes done using TurboTax

Difficulty of Care NY

user17703352072 — Fri, 06 Feb 2026 00:42:04 GMT

Does NYS recognize Difficulty of Care IRS 2014-7 payment exemption? I successfully entered my W-2 with the amount in box 1 and the entered the credit in Other Income to offset it, but does that flow into the NYS return or do I need to add that income back in? I've seen conflicting info on whether NYS exempts the income as well. If they don't then how/where do I add it back in on the NYS return. I saw a reference to IT-225 but can't see how to do that through the steps.

Thanks for any help you can offer. This is not a well-documented subject but has a huge impact on a person's return.

Re: Difficulty of Care NY

KrisD15 — Fri, 06 Feb 2026 00:48:45 GMT

No, Difficulty of Care is no longer entered that way.

Years ago there needed to be a "correcting entry" to offset the amount, but that is no longer needed.

Enter the W-2 the way it was reported,
On the screen that follows that says
"Let's check for other situations"
SELECT "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments"

That's all you need to do for that income.

Re: Difficulty of Care NY

user17703352072 — Fri, 06 Feb 2026 01:44:20 GMT

Thank you very much for that. I am very thankful to have had an expert respond so quickly.

Health & Happiness!