Context: I am a IHSS live-in provider with zero in Box 1 and 2, same value in box 3, 5, Box 12a, and some other values in Box 4, 6 and 14a. I may not qualify for Earned Income Credit and I don't have dependent children on my tax return. (I have a second W-2 from another employer, but that may not re relevant to this question)
W2 entries (Example)
- Box 1: 0
- Box 2: 0
- Box 3: 38778.25 (Social security wages)
- Box 4: 2404.25 (Social security tax withheld)
- Box 5: 38778.25 (Medicare wages and tips)
- Box 6: 562.28 (Medicare tax withheld)
- Box 12a: II : 38778.25
- Box 14: CA-SDI: 426
I am following the instructions of copying box 3 to box 1 and choosing Nontaxable Medicaid waiver for all amount of $38778.25. (Reference: post)
Question:
Would it be acceptable to IRS if following those steps have resulted in savings via the credits below added by TurboTax when I imported IHSS W2 though the IHSS income is non-taxable? Thank you.
a) Social Security withheld = Box 4 of W2= $2,404 added to line 32 of 1040 :Total other payments and refundable credits.
b) Medicare tax withheld = Box 6 of W2 = $526.28 (Form 8959 line 19 added into line 25 c of 1040: Payments: Federal income tax withheld from: (Other forms)
c) CA-SDI: = Box 14 of W2 = $426.567 added to Section "Taxes you paid" : Line 5a Col B: "State and local income tax withheld"
