Medical Waiver Payments

Recommended IRS Reference

• Medicaid Waiver Payments (MWP) are payments made by a state, county, or agency to a care provider for non-medical support to an individual.
• The care provider and the care recipient must live in the same home.
• The provider may exclude MWP from taxable income and may include MWP as earned income.
• There are various ways that MWP may be reported as income but if it is on a W2 then there is an option in Taxslayer on the W2 input fom to include it as earned income. Otherwise it will not be included and will not be taxed.

TXLNX 8/13/2023

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