The new rules have the California providing a W2 for In Home Supportive Services. If it is care for a disable dependent, there is no income in box 1 of the W2 and the income classified under Box 12a as II "Medicaid waiver payments excluded from gross income under notice 2014-7". When doing the California State return, the state review says you do not qualify for online submission as one of your W2s have value of 0$ or less than 1$ and by tax code cannot be submitted on line. Is this true?
