Your tax-exempt Medicaid waiver payments from in-home supportive services (IHSS) may be on a W-2, 1099, or no form at all, depending on where you live.
Select the form you received and follow the instructions to enter your payment in TurboTax.
I received a W-2 with $0 in Box 1
- Sign in to TurboTax and open your return
- Select Search, enter w-2, and select Jump to w-2
- Enter all your W-2 info
- On the Let’s check for uncommon situations screen, select the box next to Nontaxable Medicaid waiver payments that qualify as difficulty of care payments
- Enter the amount of Medicaid waiver payments into the difficulty of care payment you received from IHHS box
- This is the same amount reported in boxes 3 and 5 of your W-2
- Your payments are nontaxable, but TurboTax uses this number to calculate credits you may qualify for
- When you get to the Earned Income Credit section in Deductions and Credits, we’ll ask if you want to add your Medicaid waiver payment to your income for this credit. You can answer based on what benefits you most.
I received a 1099 or no form
- Sign in to TurboTax and open your return
- Select Federal, then Wages & Income
- Under Less Common Income, select Start or Revist next to Miscellaneous Income, 1099-A, 1099-C
- Select Start or Revist next to Other income not already reported on a Form W-2 or Form1099
- Answer Yes to Did you receive any other wages? and Continue
- Continue through the screens, leaving the boxes blank until you get to the Certain nontaxable Medicaid waiver payments not reported on Form W-2 or 1099 screen
- Enter the amount of Medicaid waiver payments and Continue
- Finish entering the rest of your income
- When you get to the Earned Income Credit section in Deductions and Credits, we’ll ask if you want to add your Medicaid waiver payment to your income for this credit. You can answer based on what benefits you most.
TurboTax HelpIntuit
