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Get your taxes done using TurboTax
Did you claim the Difficulty of Care payments as income?
If you did, did you claim all of the income?
Difficulty of Care payments are not taxed, they needn't be reported on your tax return HOWEVER if you want the income used to figure a credit, because the addition of the income increases the credit, you must claim ALL the income. So it's ALL or NONE.
If you entered the W-2 that reported the Difficulty of Care payments in TurboTax, the program would have used all if you selected to report it. Therefore there would be no error for that.
If your W-2 reported more than just Difficulty of Care payments, you may have needed to make an allocation.
We can try to determine if the payments were entered correctly, but of course without seeing your return and knowing the circumstances of your employment, it's pretty hard to say.
If the IRS has questions, they will send you a letter, otherwise all you can do is wait. Even if you realize there was an error on the original return, you can't do much until the original has finished being processed.
If this was the first year you received and are reporting this kind of income, your return may be delayed while the IRS matches your W-2 to the copy the state sent them.
Once the IRS computer system knows you receive this type of income, filing future returns should not be subject to this type of scrutiny.
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