Difficulty of Care Income Exclusion

[TSW]

Are difficulty Difficulty of Care payments taxable in state? I understand they are not federally taxable, but I can not find any information regarding state taxation of DOC income, specifically New Jersey in my particular case. 

Also, the company my taxpayer collected income from did not collect and file the required DOC exemption forms and listed the income as federally taxable and they are stating that they will not amend the W-2 even though she fully qualifies for it. How to go about not showing the income for federal purposes.  

[Just-Lisa-Now-]

ProSeries added Medicaid Waiver boxes down at the bottom of the W2 worksheet, so you dont have to make the exclusion manually.  No clue if its excludable for NJ too, sorry.  I'm in CA, and they DO conform.

[Skylane]

NJ Div is pretty good at responding to preparers question. They’ll reply in a day or two. Would be interested in the answer but bet they follow federal.

https://www.state.nj.us/treasury/assets/contact/taxation/contact-taxpractitioners.shtml

[taxes96786]

I trust you researched the State instructions.

[Skylane]

No… i presume the OP would. When i do have a question in NJ that isn’t addressed or I’m not clear on, i find the division is a pretty reliable source.. i also get a response in writing.