Hello,
I am entering my 2024 tax information into your system.
We live in California.
I have a W-2 for non-taxable income, specifically Box 12A with code II for Medicaid income. The employer listed is my minor child, who is also the recipient of the services for which we receive this income. As a result, we are not subject to Social Security and Medicare taxes, and this income is excluded from our gross income as well.
However, when I enter this W-2, my expected refund decreases by about $3,000.
Could you please help me understand why this non-taxable income is affecting my refund?
Thank you for your assistance.
