Medicaid waiver payments

[Bonnie]

Taxpayer receives Medicaid waiver payments and has a w2 with amount of payments in box 14 but not box 1. Taxpayer can elect to receive EIC for this income but if he does is the income taxable also. Or can he not pay tax on it under IRS 2014-7 but still receive the EIC

[New York Enrolled Agent]

See Feigh 152 T.C. No. 15 and the IRS Action on Decision 2020-2 where the IRS acquiesces.

[Bonnie]

I've done further research and verified that yes this income is non taxable but also qualifies taxpayer for EIC and ACTC . Thank you for reading my post