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Medicaid Waivers (Notice 2014-7) and EIC

Tim3
Level 1

When excluding the Medicaid Waiver wages on the W-2 input page, the income is also excluded for EIC qualifying income.  Is there a fix for this?  For my return I chose to include the Medicaid waiver W-2 income as part of total reported income so the EIC earned income is computed correctly.  The credit was significantly greater that the income tax saving, but this is inconsistent with my understanding of the Notice and IRS FAQ's.  The W-2 income should be excluded from taxable (income tax) income but included in earned income for EIC.  

Is there a fix to include the amount as part of EIC qualifying income?  Thanks

 

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1 Comment 1
jharvey
Level 3

Have you tried the nontaxable medicaid waiver payment inputs in the Miscellaneous Income input screen?