Claiming EIC for IHSS Live-in Provider with no W2

TurboTax can exempt income under Notice 2014-7 per the IRS instructions. This Notice provides that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver (Medicaid waiver) program are difficulty of care payments and excludable as income.   

Since you do not have a W2 and want to use this income to qualify for earned income, here is how you will enter it.:   

1. Click on Wages and Income at the top of the screen 
2. Scroll down to "Less Common Income";   
3. click on Show More;  
4. click on Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C;  
5. click on Start or Revisit next to Other income not already reported on a Form W-2 or Form 1099;  
6. Did you receive other wages, say yes;  
7. Wages earned as a household employee, leave blank and click continue;  
8. Sick or disability pay, leave blank and click continue;   
9. The next question asks about non-taxable Medicaid waiver payments, enter the amount here,  
10. Click Continue.   

For more information, refer to IRS Notice 2014–7, 20144 I.R.B. 445 and the IRS FAQs.