Yes. Per IRS Notice 2014-7 and subsequent IRS guidance, you may file a Form 1040-X (Amended U.S. Individual Income Tax Return) to exclude Medicaid waiver payments from gross income for prior tax years in which you incorrectly reported them as income.

Key points:
– **Statute of limitations**: Generally 3 years from the original filing deadline, or 2 years from when you paid the tax — whichever is later.
– **How to file**: Complete Form 1040-X for each applicable year. Attach a brief statement explaining that you are amending to exclude payments under IRS Notice 2014-7.
– **Potential refund**: If the payments pushed you into a higher tax bracket or reduced your EITC in prior years, an amended return may result in a refund.
– **EITC consideration**: Even if you exclude the payments from income, you may still be able to claim the EITC as if the payments were included — this can actually increase your EITC refund on the amended return.

The IRS recommends working with a tax professional for amended returns, particularly if multiple years are involved. VITA (Volunteer Income Tax Assistance) sites can assist low-to-moderate income filers at no cost — find one at irs.gov/vita.