Problem Solved "Difficulty of Care" Notice 2014-7 Trying to follow instructions on how do this from previously answered question

[cottagecharm11]

Solved: There is a section for Other Misc and Other Common Income and another area down the Income List, at the very bottom for Less Common Income. I was in the wrong area, not knowing that.

I am trying to keep from paying taxes on this income. I am eligible to do this according to Notice 2014-7.  I have tried to visit Misc  Income and cannot find "other reportable income" as I follow instructions given for this situation. Using Misc- 1099,  I tried to use and wonder if it is the wrong one. In the answered question on this topic there is supposed to be a Box One for "Income" There is no Box One for income on the form Misc-1099, Box One is for "Rents", Box 2 is "Royalties", Box 3 is "Other Income" I entered the income from Box 1 on my W-2 as a negative number but it does not flow to my Form 1040 deducting it from my income.

[ColeenD3 · Accepted solution]

Enter it exactly as you described. First Less Common Income, then Miscellaneous, then Other Reportable Income. Firt enter the W-2 and then back it out again.

Any Other Taxable Income? Yes

[cottagecharm11]

Thanks for your help! Will the tax exempt exclusion automatically flow to the Oregon return since they follow federal rules that this income in tax exempt? Or, do I need to put a zero in the column that lists Oregon wages. Columns for federal and state income both list the tax exempt w-2 wages as income at the top of the allocation page for Oregon tax return.