IHSS Live-in Provider with Box 1 = $0 — not able to e-file
I am an IHSS live-in provider filing for 2025. My W-2 has Box 1 = $0.00 and Box 3/5 = [amount], which is correct under IRS Notice 2014-7.
I followed the current TurboTax recommended steps per these official TurboTax articles:
- https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-w-2/qualified-medicaid-waiver-payments-w-2-show-earned/L1XZa89dh_US_en_US?uid=m6scnxra
- https://ttlc.intuit.com/community/taxes/discussion/re-ihss-live-in-provider-zero-income/01/3466131/highlight/false#M1281396
- https://ttlc.intuit.com/community/taxes/discussion/re-ihss-live-in-provider-zero-income/01/3467820/highlight/false#M1282133
Steps followed:
- Left Box 1 as $0
- Checked "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments" under uncommon situations
- Entered the full Box 3/5 amount as the difficulty of care amount
This correctly excludes the IHSS wages from federal taxable income. However TurboTax is blocking e-filing with this error: "One of the W-2s doesn't have an amount in box 1 or the amount is less than $1."
The older workaround of copying Box 3 into Box 1 allowed e-filing but is now explicitly discouraged by the links above.
My questions:
- Is paper filing truly the only option when following the current correct method with Box 1 = $0?
- Is there any other workaround that keeps Box 1 = $0 while allowing e-filing? For example: Is it ok to enter $1 in Box 1 of W2, and enter the amount from box 3 into Checking "Nontaxable Medicaid waiver payments that qualify as difficulty of care payment "?
Thank you!