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April 12, 2020
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I have a W2 I need to file but it's exempt because this is for caring for my mother...where do I enter it and then negative it out?

  • April 12, 2020
  • 1 reply
  • 7 views
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Best answer by CatinaT1

Were you told that your payments would not be taxable income under IRS Notice 2014-7?

It sounds like you would qualify for the exclusion of the W-2 box 1 amount from your taxable income.

 

IRS Notice 2014-7 can be found at this link.  Click on the hyperlink Notice 2014-7 in the center of the page.

 

Certain Medicaid Waiver Payments for In-Home support services are excludable from gross income and should not be included in your earned income.  This is the case even if you have received a W-2 for performing these services.

 

If you have received a W-2, this help explains how to enter the income and then remove it from your taxable income.

 

Be sure to retain all your documentation.  The IRS is likely to ask questions about this income at some later time.

1 reply

CatinaT1
CatinaT1Answer
Level 15
April 12, 2020

Were you told that your payments would not be taxable income under IRS Notice 2014-7?

It sounds like you would qualify for the exclusion of the W-2 box 1 amount from your taxable income.

 

IRS Notice 2014-7 can be found at this link.  Click on the hyperlink Notice 2014-7 in the center of the page.

 

Certain Medicaid Waiver Payments for In-Home support services are excludable from gross income and should not be included in your earned income.  This is the case even if you have received a W-2 for performing these services.

 

If you have received a W-2, this help explains how to enter the income and then remove it from your taxable income.

 

Be sure to retain all your documentation.  The IRS is likely to ask questions about this income at some later time.

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