Under irs 2014-7, the medicaid wages I get for working at home are not taxable but my W-2 has state taxes withheld.
Do not enter your W-2. If your W-2 has federal or state taxes withheld, you can enter these amounts in the Deductions & Credits section under Other Income Taxes as Withholding not already entered on W-2.
Here are the entry instructions:
- In TurboTax, under the Deductions & Credits tab, select I'll choose what I work on.
- Scroll down to Estimates and Other Taxes Paid, Other income Taxes and Start.
- On the Other income taxes screen, scroll down to Withholding not already entered on a W-2 or 1099 and Start.
- On the Other Withholding Not Already Entered screen, enter the state and the amount withheld and Continue.