In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
On the next screen choose other reportable income (at the bottom)
For description enter “Notice 2014-7” . Enter the amount with a minus sign (-) in front of it
Reference: https://www.irs.gov/Individuals/Certain-Medicaid-Waiver-Payments-May-Be-Excludable-From-Income
If TT tries to give you the Earned Income Credit (EIC) , based on that income, see this TT FAQ https://ttlc.intuit.com/questions/2635384