IHSS W-2 2024

[mmof3bys]

My disabled son lives with me and I am his care provider.  Just received a W-2, with no $0.00 in box 1.  Just the amount in 12a II - which I have entered but when I try and finish and electronically file my taxes it stops me and says because $0.00 in box 1, that I have mail in my tax forms.  Is there any way around mailing them in?  Any help would be appreciated.

Thank You,

Kelly

[DawnC]

Yes, TurboTax can handle that  situation so you can avoid mailing in your return.   Choose the 2nd option from this TurboTax FAQ to enter your difficulty of care payments.  

[mmof3bys]

I've tried that but when it goes to "let's check for uncommon situations I am not given the option of:  Nontaxable Medicaid waiver payments that qualify as difficulty of care payments. That is not listed. 

Let's check for uncommon situations

These don't apply to most taxpayers, but we still have to ask if any are related to your work

Nonstandard W-2 (handwritten, modified, or altered)

W-2 was corrected by my employer (Form W-2c)

Didn't get a W-2 (manually calculate my earnings)

Unreported tips

Paid family leave

Nonqualified pension plan not on my W-2

Worked outside the U.S.

Religious employment

Inmate or lived in a halfway house

Employed by a foreign government or international organization

None of these apply to me

These are my only options

[DawnC]

Try deleting that W-2 and re-entering it.   The screen should show as below.  If you don't get the option, let us know if you are using TurboTax Online or desktop and what version you have (basic, deluxe, premier, or H&B).   

[mmof3bys]

I deleted that W-2 and re-entered.  That option is still not coming up for me.  I am using turbotax online.

[ThomasM125 · Accepted solution]

Since you don't have taxable income in box 1, you don't need to enter the W-2 form in TurboTax. 

If you want the income to be considered for earned income credit purposes, you can enter it as follows:

1. Navigate to Less Common Income in the Wages and Income section of TurboTax

2. Choose Miscellaneous Income, 1099-A, 1099-C

3. Choose Other Income not already reported on a Form W-2 or Form 1099

4. Answer "yes" on the screen that says Other Wages Received

5. On the screen that says Certain nontaxable Medicaid waiver payments not reported on Form W-2 or 1099 enter your Medicaid waiver payments 

[mmof3bys]

Thank you SO MUCH!  That got the info entered and filed.

[ajp25]

We have the same issue.  We are using Turbo Tax Premier Desktop and the "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments" does not come up as a choice.  Is Turbo Tax planning on fixing this issue? Turbo Tax is telling us we can't efile because $0 in box 1.  

[CatinaT1]

Ensure you entered it according to these instructions: How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?

TurboTax can exempt income under Notice 2014-7 per the IRS instructions for Medicaid Waiver payments from IHHS. This Notice provides that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver (Medicaid waiver) program are difficulty of care payments and excludable as income. Additionally, you can choose to use this income to calculate Earned Income Credit. Regardless, the income will remain non-taxable.