Under irs 2014-7, the medicaid wages I get for working at home are not taxable but my W-2 has state taxes withheld.
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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:
For more information, see IRS Notice 2014–7, 20144 I.R.B. 445 and IRS FAQs.
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