Medicare waiver payments

[rainman611]

where do I report Medicade waiver payments received on a W2 line 1,3,5

[BobKamman]

You are asking about Medicaid waiver payments.

Qualified Medicaid waiver payments may be excluded from gross income only when the care provider and the care recipient reside in the same home. When the care provider and the care recipient do not live together in the same home, the Medicaid waiver payments may not be excluded from gross income.

[rainman611]

Thank you for your replay.

I am aware about the rules but a W2 was issued and I want to "offset" that income on the return to refund Fed and SS taxes withheld on W2. Previous inquiries on-line stated the amount should be put on line 8 of the schedule 1 but that does not seem correct.

Thank you

[rainman611]

Thanks to all who responded.

The answer is on input on screen 14.1 "Nontaxable Medicaid Waiver payments to care provider that were incorrectly reported on W-2 box 1" . Entry on this screen will transfer to schedule 1 line 8 and the amount will reflect as a negative number with the explanation of "Notice 2014-7"

Thanks again

[dspro]

hello if In proseries. where do you enter this in negative number under  proseries software ?

[TaxGuyBill]

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@dspro wrote:

hello if In proseries. where do you enter this in negative number under  proseries software ?

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If this is a 2022 return, there is a spot to enter it on the W-2 worksheet in ProSeries.  Scroll down a ways (maybe half way) and you'll see a few lines asking about the Medicaid Waiver amounts.