Vanessa's post above works and is correct IF you WANT to include your Medicaid waiver payments such as for purposes of qualifying for EIC. However, for most people, including this income may likely put you over the EIC limit if your spouse already has modest W2 income.
As I understand it, you do not *HAVE* to include this income, thus since your Box 1 wages show 0.00, you can ignore adding this. HOWEVER, you likely may have had state income tax withheld and you DO want to include that, so go to Deductions & Credits, scroll down to Other Income Taxes, then add Withholding not already entered on a W-2.
My wife is an IHSS caregiver in Colorado for our daughter; it just so happens that this year we do not qualify for EIC anyways due to investment income being over the $11600 limit, thus we are choosing to include her income this time (per Vanessa's instructions) because it helps increase the CTC refund for us a couple hundred bucks. In a normal year if our investment income was lower, then we would not include my wife's waiver payments so that we could qualify for EIC based solely on my income.
The IRS has a Q&A. You do not have to include your waiver wages, but you can if you want to (to qualify for credits as they say), and if you do, you must include all of it, not just part of it. https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income
You will be able to efile your federal return via turbotax this way. However, at least in Colorado where we are, we are unable to efile the state return because we have state income tax withheld which we reported as already being withheld even though there wasn't w2 income attached to it, thus we mail the state return every year.
