I have filed a difficulty of care form and now my W-2 form does not show earned income in box #1
It only reports it in box #16 of W-2 form. this disallows EIC Tax Refund.
My employer tells me that my income is IRS tax free. So they can not Report income in Box#1
Where can I report this Income in order to qualify for EIC tax refund. I have no other earned income
to report. My Income is exempt from IRS under code 2014-7
That's correct. Qualified Medicaid Waiver Payments for in-home support services are not reported in box 1 of the W-2. They are excludable from gross income and should not be included in your earned income. They don't qualify for the Earned Income Credit (EIC).
For more information, refer to IRS Notice 2014–7, 20144 I.R.B. 445.