1099-NEC and Notice 2014-7

newguy
newguy Member Posts: 1 Newcomer
in Filing my taxes

Hi, my wife received a 1099-NEC, and it is a medicaid waiver, and I am seeing a mixed result when I look up if I need to include it on my tax. When I entered it on Schedule 1 and subtracted it from other income under Notice 2014-7, it significantly decreased our refund, but when I deleted it, it increased our refund. I am afraid that I may be doing it wrong. Do I need to just not enter the information at all since it is nontaxable, or do I have to include it on our tax, which decreased my refund by a lot? We are filing as married filing jointly. I want to get the max refund, but don't want to get in trouble.

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Answers

  • JMSSGV
    JMSSGV Member, Star Posts: 303 image

    If you meet certain requirements, you can elect to exclude the Medicaid waiver compensation from income but still have it count toward the Earned Income Credit. Is that what you're doing or trying to do?

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