TaxGuyBill
Level 15
01-31-2023
04:23 PM
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@Skylane wrote:
Only 683 of the 20K earnings is taxable. If it causes loss of $99 EITC benefit, then that's what it does......
IRS Notice 2014-7 says that certain Medicaid Waiver payments are not taxable. Further IRS direction says to back it out if the W-2 shows it. The IRS also now says you can choose whether you want that income to apply for the EIC calculation or not.
