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@Avs19 wrote:

The question is with the supplemental payments for taking his clients to the museum, parks, and other activities. These payments were reported on a 1099 separately from his other payments.

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My first thought is that those payments may NOT be part of the Medicaid Waiver program.  Those payments could be coming from some other government-funded program.

I have a client that receives payments, and she also receives a letter from the State stating how much qualifies under 2014-7 (from the Medicaid Waiver program) and how much is taxable (from other state programs).