NJ State Taxes on W-2 documented medicaid waiver payments

[Reelflyer]

Intuit's turbotax program for the state of New Jersey is handling Medicaid Waiver payments that are documented on a W-2, in box 12 as "II" incorrectly. The federal program handles these payments fine. But the NJ State Income Tax program from Intuit Turbotax does not.

A search of the online Q&As show that this has been brought up before. But I notice that no one from Intuit Turbo Tax bothers to answer the question.

I would just exclude this W-2 from my filing all together if it weren't for the fact that the community based provider didn't take money out for NJ State taxes, which I now need to recover.

For a parent caring for an adult disabled dependent child where they live in the same home, NJ follows the IRS lead on these Medicaid waiver payments and excludes them from income tax payments.

Intuit Turbotax, please finally correct this error and show me how I exclude this income as well as get a refund for what has already been paid to the State of NJ for income tax on this money.

[BillM223]

What was the amount in box 1 on the W-2, and what was the amount in box 16?

You are correct that New Jersey follows the federal practice of excluding Medicaid waiver payments, but I want to see if they have already been excluded in box 16.