How to claim medicad waiver on federal form
Client had medicaid income reported on box 1 of his W-2 ,which it shouldn't how can i claim it as waiver on his 1040 form
Client had medicaid income reported on box 1 of his W-2 ,which it shouldn't how can i claim it as waiver on his 1040 form
The IRS website explains how to deal with Notice 2014-7 wages. Basically you just exclude them as a negative on Line 21.
https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income
If EIC is involved you may have to make a few other adjustments on the EIC worksheet so that the program doesn't use the excluded wages for EIC purposes.
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