Get your taxes done using TurboTax
If both your W-2's have $0 in Box 1, you won't be able to Efile UNLESS after entering them you get a screen 'Let's check for other situations' with a checkbox for 'Non-Taxable Medicaid Waiver Payments'. Since you uploaded your W-2's, go to the Income section and EDIT your W-2's. If this screen comes up for you, your problems are solved.
The W-2 income is included as non-taxable, and you should then go through the Earned Income Credit interview to see if you qualify. If the screen doesn't come up for you (or does not have the appropriate item to check), then DELETE your W-2's and report as follows:
- At the Income Topics page, scroll down to 'Miscellaneous Income 1099-A, 1099-C' and Start.
- On the next screen, scroll all the way down to 'Other Reportable Income' and Start.
- On the next screen, 'Yes, other taxable income'
- On the next screen 'Add'. For a description, say 'Medicaid Waiver Income' and put the total amount of the two W-2's.
This puts the income into your return; now you'll make an adjusting entry to make it non-taxable. Go thru the 'Miscellaneous Income', 'Other Reportable Income', etc. again, but this time for a description, enter 'Adjustment for Non-Taxable Medicaid Waiver Income' and the same amount with a minus sign in front of it.
However, if you get your income entered, and then the EIC interview says you don't qualify for a credit, you don't even need to file a return, if this is your only income. Just keep the W-2's for your records.
