Looking back at my tax return last year, I actually put the same number from IHSS W2's box 3 to box 1, selected "uncommon situations"->"Nontaxable Medicaid payments that qualify as difficulty of care payments", and claimed full amount of box 1 value. I was able to efile last year, so that looks like another workaround in addition to adding $1 to box 1. Though, on last year (2023)'s IHSS W2, there was no box 12. On this year (2024), there was box 12 (code II with full amount of box 3 there). I am not sure if that matters from IRS's perspective though.
