topic W2 with zero in box 1 IHSS live-in provider - questions in Get your taxes done using TurboTax

W2 with zero in box 1 IHSS live-in provider - questions

jackkgan — Thu, 27 Mar 2025 02:56:58 GMT

Hi there , continuing from my post https://ttlc.intuit.com/community/taxes/discussion/how-to-enter-ihss-live-in-provider-w2-with-zero-in-box-1/01/3450964#M1274852 .

1) Box 1 and 2 in my W2 are zero, Boxes 3, 5 and 12a show same amount . Boxes 4 and 6 have other values. I followed the suggested steps in that post of importing IHSS, not changing anything, choosing "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments" under Let’s check for uncommon situations" and entering that value in "Amount of payments difficulty of care payments" under "Let's check your Medicaid waiver payments".

Please advise if I am missing anything here and the reason for this error about Box 5. Thank you

2) In the instructions 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:

My tax payments are increasing if I follow step 4 below. As I am live-in provider with zero in Box 1, I did not enter the amount from box 3 to box 1. Hope it is ok to leave box 1 as zero and not follow the step 4 below.

Step 4: If you have a number instead of zero in Box 3, enter that number again in Box 1.

Re: W2 with zero in box 1 IHSS live-in provider box 5 shows mis-match though they match

MarilynG1 — Fri, 21 Feb 2025 21:35:26 GMT

Enter your Box 3 amount into Box 1 of your W-2 (reported as $0), and choose 'Nontaxable Medicaid waiver payments that qualify as difficulty of care payments' on the Uncommon Situations page, on the following pages indicate that 'all of it' in Box 1 is for difficulty of care payments, and that you did not get any other difficulty payments that are not in Box 1 (since you're entering the Box 3 amount already).

This removes the income from taxation, but includes it for any credits you may qualify for (EITC, for example). You'll see the income included on Form 1040, Line 1, but then subtracted out on Line 8.

If you're using TurboTax Online, in the left-side menu, go to Tools > Tax Tools, then choose View Tax Summary from the pop-up window. Then, back at the left-side menu, choose Preview my 1040. Look at the actual tax form, not just the running amounts at the top.

Your Efile will be rejected with a $0 in a W-2 Form in Box 1.

Here's the instructions for How to Enter Tax-Exempt Medicaid Waiver Payments.

Re: W2 with zero in box 1 IHSS live-in provider box 5 shows mis-match though they match

jackkgan — Fri, 21 Feb 2025 22:54:04 GMT

Thank you so much MarilynG1! That was super helpful. I entered the value of 38,778 from box 3 to box 1, chose the "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments" in "Uncommon situations" screen, and entered the following in the Medicaid waiver payments screen.

How much of the $38,778 in box 1 is difficulty of care payments?

-- All of it

Did you get any difficulty of care payments ... that aren't in box 1? (This includes payments in other boxes or that aren't on your W-2.)

--- No