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

[DianeW777]

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.