DianeW777
Expert Alumni

After you file

You can amend your return to remove this income from your tax return.  The amended return will be available to use on February 18th.  

Do not amend your return if you already e-filed the tax return.  Wait until the IRS has fully processed the return with either a reject or accepted response.

 

Once the return has been processed, and if it is rejected by the IRS, you have the opportunity to correct it immediately and resubmit through e-file a second time.

 

If the return is processed, and it is accepted by the IRS, this require preparing an amended return. You have time, the Form 1040-X is scheduled for availability on February 18th.  This is a normal timeframe for release.

Below are the specific changes you would make on your amended return.  Follow these steps to remove the income from your tax return.

  1. Scroll down the page to the last section titled: Less common Income and click show more;
  2. Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
  3. Scroll down to the last option titled Other reportable income and select start or edit;
  4. When it asks, "Any other reportable income?" say yes then you will make one entry
  5. Enter this description: IRS Notice 2014-7 excludable income and enter the W-2 Box 1 amount as a Negative (-) number

When you return to the Wages & Income page, scroll to see the negative income beside Miscellaneous Income, 1099-A, 1099-C; This will remove the income on your return for the IHSS or other payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver program.

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