Follow these steps to report qualified Medicaid waiver payments exlcudable under IRS Code Section 131 per notice 2014-7:
- Go to the Input Return tab.
- On the left-side menu, select Income.
- Click on Wages, Salaries, Tips (W-2).
- Enter all information as reported on the W-2.
- On the left-side menu, select SS Benefits, Alimony, Misc. Income(SS Bene., Misc. Inc.).
- Enter the excludable amount as a positive number in the Medicaid waiver payments to care provider field.
The amount you enter will print as a negative number on Form 1040 other income, with a description of "Notice 2014-7".