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Difficulty of Care Payments

Level 1

Does anyone have any guidance on how to indicate that wages are "Difficulty of Care" payments on Lacerte?

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5 Replies 5
Level 15
Level 15

In ProSeries we back the wages out as a negative on the Other Income line with the explanation "Excluded wages per IRS Notice 2014-7",  I dont speak Lacerte, so Im not sure how you make that happen in your program.

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Level 3

There is a spot in miscellaneous income for medicaid waiver payments.  That will subtract out on miscellaneous income line.

Level 1

Enter the wages as normal on Screen 10, wages. Then go to Screen 14.1, SS Benefits, Misc Income and look under Alimony and Other Income. There is a line to enter Medical waiver payments to care provider. Enter the wages there and they will be subtracted.

Level 1

Any thoughts on how to add this back for a state return (Oregon)?

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Level 15

Try the State & Local Modifications screen