Difficulty of Care NY

[user17703352072]

Does NYS recognize Difficulty of Care IRS 2014-7 payment exemption?  I successfully entered my W-2 with the amount in box 1 and the entered the credit in Other Income to offset it, but does that flow into the NYS return or do I need to add that income back in?  I've seen conflicting info on whether NYS exempts the income as well.  If they don't then how/where do I add it back in on the NYS return.  I saw a reference to IT-225 but can't see how to do that through the steps. 

Thanks for any help you can offer.  This is not a well-documented subject but has a huge impact on a person's return.  

[KrisD15 · Accepted solution]

No, Difficulty of Care is no longer entered that way. 

Years ago there needed to be a "correcting entry" to offset the amount, but that is no longer needed. 

• Enter the W-2 the way it was reported,
• On the screen that follows that says 
• "Let's check for other situations"
• SELECT "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments" 

That's all you need to do for that income. 

[user17703352072]

Thank you very much for that.  I am very thankful to have had an expert respond so quickly.  

Health & Happiness!