Medicaid Waiver Payment

[fesemagu]

I am preparing a tax return for a tax payer whose w2 wages is more than $100,000.

She also received a Medicaid payment waiver for about $16,000. How do I exclude the medical waiver payment from taxpayer income since this will increase the tax liability.

[Just-Lisa-Now- · Accepted solution]

Other Income line, as a negative  Excludable wages per IRS Notice 2014-7

[fesemagu]

Thank you.

[fesemagu]

Thanks