Medicaid Waiver Payment 2014-7

Effective for the 2024 filing season, you will need to enter Medicaid waiver payments slightly differently. The IRS has changed this slightly. 

If your Medicaid waiver payment is on a W2 and they should not pay tax on it do the following: 

• Enter N 2014-7 and the amount in box 14 instead of box 12.
• Do not put anything in the Notice 2014-7 at the bottom of the W2, that is now to include income. 
• Go to Sch 1, Line 8s - override that field. F8 and enter the amount of excludable income. 

Be sure your federal version is at 3.0 or higher for the 2024 software. - Online updates automatically. 

Additionally, if your return has no income you will need to enter $1.00 on the W2 so that the return will qualify to be filed.