I've seen the empty box 1 very recently when doing volunteer VITA work. I suggested putting the exact amount of the medicaid waiver amount in for box 1 and, as it didn't change the refund, the taxpayer's return was then efiled. I'm waiting to hear back from that person to see if it was accepted. I'm pretty sure that the IRS is not going to squawk about a taxpayer reporting a tad more income than the IRS can see from the forms it receives.
