In the 2023 program I had difficulty finding the solution for calculating the correct amount of earned income credit when the taxpayer received Medicaid Waiver payments.  Now the providers don't include the difficulty of care payments in box #1 of the W-2 form.

Step #1 - include the full amount on line 1 of the W-2 (this is different from the amount shown by the provider).
Step #2 - In Part VI of the W-2 check box K(a) - "Box 1 wages include amounts excludable as difficulty of care payments.
Step #3 - In Part VI of the W-2 on line K(b) enter the amount of the difficulty of care payments.
Step #4 - On the earned income worksheet check Box A that states if any wages are Medicaid Waiver Payments that you choose to include in earned income.