Trying to figure this out as well. It seems that all of the replies and other posts I have read are not understanding all of the details here and why this is an issue with TT 2024:
- These payments were previously not reported on a W2, there is a change for this year where a W2 is now issued with zeroes in ALL boxes EXCEPT for box 12 where it shows the payments with a new code "II" which indicates they are Medicaid Waiver Payments.
- When entering this W2 info in TT 2024, it correctly puts the amount on 1040 Line 1d (Medicaid waiver payments) and then subtracts it on line 8 (Other income) so the amount is not included in AGI on line 11. So far so good.
The problem then comes when trying to eFile from TT, it says it cannot eFile because one of the W2's has a zero amount in box 1 and says the return must be mailed.
Is TT aware of this issue and is there some type of update that can be done to fix this issue for those of us with this situation? I saw some posts that says to put $1 in box 1 of the W2 as a workaround but this doesn't seem like a good solution since it won't match what the actual W2 says and could flag the return for review.
