I am a 70 year old woman caring for her disabled adult son. I received nontaxable Medicaid waiver payments according to Notice 2014-7 and also SS benefit and some interest from retirement accounts.
My question is regarding the Social Security benefit Worksheet: when you calculate the taxable part of social security benefit, do you have to add in line 3 of the worksheet the nontaxable Medicaid waiver payment?
I know the Medicaid waiver payment is not added to the adjusted income, but taxable SS benefit is and it is not clear to me if I should add or not the Medicaid payment to the other sources of income (line 3= lines 1z+2b+3b+4b+5b+7+8), since line 8 is negative income showing the Medicaid nontaxable payments.
I know it is not a common situation/interest, but for me it is a lot of time consuming with no result until now.
Thank you,
Combine the amounts from Form 1040 or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, and 8
they are not included because they are not taxable and thus will not show up on any of these lines.
Thank you, I thought so, and common sense says so. I just couldn't find anything related to this topic online (taxable SSA and Medicaid payments), and I have to amend my returns for previous years to reflect the nontaxable payments. I want to be sure I got it right. Thank you, have a good week