A workaround for this is to enter $1.00 in Box 1 when making your W-2 entries. This should prevent the IRS from rejecting the e-file. You will be taxed on an extra dollar, but you are avoiding the cost of stamps and printing your return.
Also Thomas125 states in this post "If your income is exempt and you didn't have any tax withheld, then you can just leave the W-2 off of your tax return, provided your tax does not change when you remove it".
Your income is exempt if if the care recipient permanently lives with the caregiver, and the caregiver has completed form SOC 2298.
As an FYI, Nontaxable Medicaid waiver payments that qualify as difficulty of care payments is listed in Box 12 of the W2 and is coded II. it is not listed on the screen that is posted above.
@dipsys
@johnr7
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