Following the instructions provided by @DianeW777 to enter Form W-2 for IHSS will work. See this TurboTax help article for more information; however, there is currently an issue if you have "0" in box 1, in that entering '0" in Box 1 causes an error. I have reported this issue for further review.
In the meantime, if you have "0" in Box 1 of a W-2, you can enter "1" instead, or the amount in Box 3 or Box 5 from your W-2 if applicable, in Box 1 in TurboTax. This will resolve the error and allow you to include Social Security and Medicare information from your W-2 if they are included, and still be able to exclude the IHSS difficulty-of-care payment from income.
From the help article referenced above:
- Enter all your W-2 info.
- On the Let’s check for uncommon situations screen, select the box next to Nontaxable Medicaid waiver payments that qualify as difficulty of care payments.
- Enter the amount of Medicaid waiver payments into the difficulty of care payment you received from IHHS box.
- This is the same amount reported in boxes 3 and 5 of your W-2.
- Your payments are nontaxable, but TurboTax uses this number to calculate credits you may qualify for.
- When you get to the Earned Income Credit section in Deductions and Credits, we’ll ask if you want to add your Medicaid waiver payment to your income for this credit. You can answer based on what benefits you most.
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