After you file

The entry for IHHS income changed this year. You will enter your W2, even though it shows $0 in box 1. This will also allow you to claim earned income credit if you choose.

Since you are getting this error, I would try deleting the W2 and re-entering it. There may be something hung up in the W2. Also, clear your cookies and cache or try a different browser.

TurboTax can exempt income under Notice 2014-7 per the IRS instructions. This Notice provides that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver (Medicaid waiver) program, are difficulty of care payments and excludable as income. You can choose to use this income to calculate Earned Income Credit. Regardless, the income will remain non-taxable.  

This is how you will enter your W2: 

1. Sign into TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer);  
2. Click on Federal from the menu on the left-hand side and then click on Wages & Income at the top;  
3. Click Edit/Add next to Job (W-2);   
4. click on Add a W-2; and enter the information as reported on your W-2.  
5. After you have entered all your W-2s, you will see a screen that looks like this, asking for uncommon situations. Make sure you check the box for Nontaxable Medicaid waiver payments.   

You will then get to choose if you want to include the income for Earned Income Credit or not.  

For more information, refer to IRS Notice 2014–7, 20144 I.R.B. 445 and the IRS FAQs.