How to exclude Medicaid waiver payments from income in ProConnect Tax

To report qualified Medicaid waiver payments excludable under IRS Code Section 131 per Notice 2014-7:

1. Go to Input Return ⮕ Income ⮕ Wages, Salaries, Tips (W-2).
2. Enter all information as reported on the W-2.
3. On the left-side menu, select SS Benefits, Alimony, Misc. Income.
4. Enter the excludable amount in the one of the following boxes:
   • Nontaxable medicaid waiver payments to care provider to include earned income that were not reported on W-2, Box 1
   • Nontaxable medicaid waiver payments to care provider to include earned income that were incorrectly reported on W-2, Box 1

The amount you enter will flow to Schedule 1, line 8s.