1990NEC issued for nontaxable income-- how to avoid being taxed 0n it! .

[bops]

I provide care for medicaid recipients who live with me . The income from  level   serice   beneficiaries living in my hone is not taxable. Has not been since 2014.  But this year my agency was required to submit a NEC1099.  IRS publications assure that thenpayent is still nontaxable, but does need to be reported. 

However, when I input the NEC 1099  into TurboTax , it calculates taxes on this amount. iI no workaround.   Clearly Turbo Tax needs to be able to delete this income when calculating taxable income. 

Please advise--n the sooner the better!  

[Vanessa A]

After you enter your 1099-NEC, you will select This income is a Medicaid waiver payment that qualifies as difficulty of care payment.  This will remove it from your taxable income.