How do I enter a W2 received for "Difficulty of Care" Notice 2014-7 that is considered nontaxable? There is an amount listed as wages in Box 1.

Since your Difficulty of care payments are listed in box 1, you don't need to pay any attention to the instructions referencing box 3. So, don't indicate that any of your Medicaid waiver payments are listed in other boxes. On the screen that says Let's check your Medicaid waiver payments, you just need to check the option that says "all of it" under the question that says How much of the (box 1 $) in box 1 is difficulty of care payments?, assuming all of the benefits in box 1 are Medicaid waiver payments. Otherwise, choose one of the other options and enter the amount that is Medicaid Waiver payments.

You can look on line 8(s) on schedule 1 to see the amount of Medicaid waiver payments being excluded from your taxable income.

To view your form 1040 and schedule 1 to 3:

1. Choose Tax Tools from your left menu bar in TurboTax Online
2. Choose Tools
3. Choose View Tax Summary
4. See the Preview my 1040 option in the left menu bar and click on it
5. Choose the Back option in the left menu bar when you are done