Retirement tax questions

TurboTax was updated to address the situation where you have zero in Box 1 of your W-2. If you are in California and have a zero in Box 1 of your W-2 for IHSS Difficulty of Care income, see the revised steps below:

If you entered something in the Less Common Income area, that needs to be deleted. 

Then, go back and edit your W2 entry. 

1. You are going to enter your W2 exactly as it is, even with the 0 in box 1.
2. The next question is going to ask you to take another look to ensure your entries are correct, select continue.
3. You will get a screen that looks like this screenshot 

1. Next, you will be asked to enter the total amount of difficulty of care payment you received. Enter the amount here.
2. Go to the Deductions and Credits tab and go to Earned Income Credit.
3. Go through the eligibility questions, and then you will get to a screen that says: Let's check if you can get a bigger credit. It will look like this:

You DO want to include your payments for the calculation of the credit.

See here for a recently revised help article that explains these steps, and the alternative steps if the income was incorrectly included in Box 1.

[Edited 04/13/23| 10:09am PST] 

@jentax101979 (edited)