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How to exclude Medicaid waiver payments from income in ProConnect Tax

SOLVEDby Intuit17Updated March 15, 2023

Follow these steps to report qualified Medicaid waiver payments excludable under IRS Code Section 131 per Notice 2014-7:

  1. Go to the Input Return tab.
  2. On the left-side menu, select Income.
  3. Select Wages, Salaries, Tips (W-2).
  4. Enter all information as reported on the W-2.
  5. On the left-side menu, select SS Benefits, Alimony, Misc. Income.
  6. 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.

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