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Level 5
April 10, 2026
Question

IHSS Live-in Provider with Box 1 = $0 — not able to e-file

  • April 10, 2026
  • 1 reply
  • 154 views

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:

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:

  1. Is paper filing truly the only option when following the current correct method with Box 1 = $0?
  2. 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!


    1 reply

    Level 15
    April 10, 2026

    Give yourself one dollar of interest which will allow you to efile. For the Bank in the 1099-INT section just put “to enable efiling “.

    jackkganAuthor
    Level 5
    April 10, 2026

    Thank you! Please confirm if adding $1 in Box 1 of W2 and going through the flow of "Nontaxable Medicaid waiver payments that qualify as difficulty of care payment " would be acceptable.

    Level 15
    April 10, 2026

    Yes. It’s acceptable.