How can I exclude the medical waiver income from the EITC calculation?

If you do not wish to use the income to calculate your earned income tax credit (EITC) follow the instructions in the link below. Depending on your W-2, if applicable, will determine if you are allowed to exclude it.

• How do I enter my tax exempt medicaid waiver payments in TurboTax?  Carefully review this FAQ for important details.

If your payments qualify to be excluded you should complete your tax return. 

• Medicare Waiver Payments Exclusion
• IRS Publication 596 (will show the income chart for EITC)
• Form 1040 Instructions, page 40.