Why Turbo Tax does not let me choose the option to not include the medical wavier income in the EIC calculation?

[jimmylei1729]

I reported the medical waiver income under Box 12II per the W-2, when I got to the Earned Income Credit section in Deductions & Credits, they ask if you want to add your Medicaid waiver payment to your income for this credit. I chose to include but saw it eliminate the credit, so I wanted to go back and choose not to include, but the system did not show that page again and kept including the medical waiver income for the EIC calculation. Is there a way to reverse and select again?

[DianeW777]

Best advice is to remove the medicaid waiver payment on your W-2, box 12.  Continue through the section until you get back to the main menu. Next, select the earned income tax credit (EITC) and continue through that section.  Once completed you can go back to answer the questions again.

• How do I enter my Medicaid waiver payments in IHSS in TurboTax?

1. Open your TurboTax Online return
2. Click on Tax Home (left panel)
3. Select Income and then Wages - once complete
4. Select EITC - once complete
5. Go back to the W-2 and add back your waiver payments
   • Medicare Waiver Payments Exclusion 
   • IRS Publication 596 (will show the income chart for EITC)