What type of tax form did you receive for your Difficulty of Care payments? You can file a return even though your payments aren't taxable. To determine if you want to include this income on your tax return for your Earned Income Tax Credit, when you get to that section, you can elect to add the income or exclude it. Try both ways to determine which way gives you the greater EIC.
Follow the steps below to enter your W-2
- Open TurboTax
- Select Federal Taxes
- Select Wages & Income
- Select Work on W-2
- Enter your W-2, at the Let's check for uncommon situations; check the box next to Nontaxable Medicaid waiver payments
- Continue following the prompts.
Review the TurboTax Help article How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax? for navigation instructions.
The 1095-A is used to complete your Premium Tax Credit Form 8962 and reconcile your Premium Tax Credit. Refer to the TurboTax Help article Where do I enter my 1095-A? for navigation instructions. If there are zeroes in any of the field, leave the spaces blank.
If you W-2 has 0 or blank in box 1, you won't be able to e-file, you must print and mail your return.
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