Under IRS Notice 2014-7 certain Medicaid Waiver Payments may be excludable from income. Normally, taxpayers receive these payments through w2 or 1099-MISC. Like other tax software if ProSeries add a Box Titled "Medicaid Waiver Payment" in w2 and 1099 Misc worksheet it will be more convenience and save us a lot of time. Since Medicaid waiver payments can be includable or excludable to calculate EIC, if ProSeries add another box in w2 and 1099-MISC titled "Do you want to include Medicaid Waiver Payments in the calculation of EIC?" so we can choose Yes/No as needed.
In order to enter Medicaid waiver payment in current ProSeries system, we need to calculate total wages manually that taxpayer receives from all w2s/1099 Misc under Medicaid waiver and then enter this amount in Other income as a negative balance. For the EIC calculation in current system, we need to change earned income amount manually in EIC worksheet back and forth to check maximum tax refund.
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