How to fill out Difficulty of Care for Medicaid after I file

[Laura_CPA]

No, it is not, however that is not the correct form either. 

[Laura_CPA]

Certain Medicaid Waiver Payments May Be Excludable From Income 

[firedude545]

What form would I use to recoup the taxes taken out last year as an exempt employee?  

[Laura_CPA]

You would amend the 1040 tax return, it will be a form 1040X. 

[Laura_CPA · Accepted solution]

Here is additional information...

Great! Thank you, we have the information for you. Since you live together under the same roof (excuse my redundancy), your wages will be excluded from taxation. You'll have to amend your tax return, leave it as is, just when you amend it, enter the wages under other income and enter it as a -(negative) amount so that it is reduced from the wages already included.

You'll use the following verbiage under the other income -(negative) amount  "wages excluded per IRS notice 2017-7", you do not have to file Form 843 for federal purposes, just use the above information. You might want to contact the third party to see if they can exempt you from taxation, so that you don't continue to receive a W-2. 

Hope this helps and if you need help with amending your tax return, please feel free to call us at 1-800-446-8848. You had me digging for the treasure LOL glad we got to the bottom of it.

[firedude545]

I have never amended a return so I would have to research how to do a 1040X.  What form would I use for THIS year 2022, since the first few months of the year, I was still taxed as an exempt employee? I have already emailed the company, and they are the ones that told me to use Form 843?

[Laura_CPA · Accepted solution]

If you used our software, here's a link to help you through the process of amending your 1040. Also, I included the phone number to call us please, we can help you with the process. For this 2022, you'll report it on your 1040, enter is as wages, and then back it out as negative amount under other income (please refer to the previous post for the details).