Tx got a statement from his medical insurance company for a benefit paid out. The insurance company labeled it as "Federal Excludable Wages".

[chapguy19]

Where do I enter the amount?
Schedule 1, line 24z "Other adjustments"?
Thanks, Christopher

[Just-Lisa-Now-]

What kind of statement? If its not taxable on the federal, can you just not enter it there and include in on the state return only?

[chapguy19]

I live in WA so there is no state return.

However, the client did receive a 1099-MISC from the same insurance company for $1500. 

Box 3, Other Income.

What do I do with this?

Thanks, C

[George4Tacks]

I don't know if this applies, but here goes:

Difficulty-of-care payments. Do not use Form 1099-MISC to report difficulty-of-care payments that are excludable from the recipient's gross income. Difficulty-of-care payments to foster care providers are not reportable if paid for fewer than 11 children under age 19 and fewer than six individuals age 19 or older. Amounts paid for more than 10 children or more than five other individuals are reportable on Form 1099-MISC.

[chapguy19]

Thanks for your input but your solution doesn't apply.

The Tx makes over $1mm per year so I'm just going to enter it as other income.

Thanks for your help.

Christopher