topic Can IHSS live-in provider with zero in box 1 take credits for Social security, medicare tax withheld and CA-SDI? in Get your taxes done using TurboTax

Can IHSS live-in provider with zero in box 1 take credits for Social security, medicare tax withheld and CA-SDI?

jackkgan — Sat, 29 Mar 2025 20:32:46 GMT

Context: I am a IHSS live-in provider with zero in Box 1 and 2, same value in box 3, 5, Box 12a, and some other values in Box 4, 6 and 14a. I may not qualify for Earned Income Credit and I don't have dependent children on my tax return. (I have a second W-2 from another employer, but that may not re relevant to this question)

W2 entries (Example)

Box 1: 0
Box 2: 0
Box 3: 38778.25 (Social security wages)
Box 4: 2404.25 (Social security tax withheld)
Box 5: 38778.25 (Medicare wages and tips)
Box 6: 562.28 (Medicare tax withheld)
Box 12a: II : 38778.25
Box 14: CA-SDI: 426

I am following the instructions of copying box 3 to box 1 and choosing Nontaxable Medicaid waiver for all amount of $38778.25. (Reference: post)

Question:

Would it be acceptable to IRS if following those steps have resulted in savings via the credits below added by TurboTax when I imported IHSS W2 though the IHSS income is non-taxable? Thank you.

a) Social Security withheld = Box 4 of W2= $2,404 added to line 32 of 1040 :Total other payments and refundable credits.

b) Medicare tax withheld = Box 6 of W2 = $526.28 (Form 8959 line 19 added into line 25 c of 1040: Payments: Federal income tax withheld from: (Other forms)

c) CA-SDI: = Box 14 of W2 = $426.567 added to Section "Taxes you paid" : Line 5a Col B: "State and local income tax withheld"

Re: Can IHSS live-in provider with zero in box 1 take credits for Social security, medicare tax w...

DianeW777 — Sat, 29 Mar 2025 19:42:03 GMT

It depends. If you had income high enough to be charged 'Additional Medicare Tax' on Form 8959, then this would be added to your tax liability. Likewise if you have exceeded the social security threshold and paid too much because of different employers you would have a credit. The threshold for 2024 is $168,600 ($176.100 for 2025). The latter would require two or more employers to receive credit on your tax return, and it is assumed that is your situation.

Who Must File Form 8959: You must file Form 8959 if one or more of the following applies to you.

Your Medicare wages and tips on any single Form W-2 (box 5) are greater than $200,000.
Your RRTA compensation on any single Form W-2 (box 14) is greater than $200,000.
Your total Medicare wages and tips plus your self-employment income, if any (including the Medicare wages and tips and self-employment income of your spouse, if married filing jointly), are greater than the threshold amount for your filing status in the Threshold Amounts for Additional Medicare Tax chart.

Yes. The CA-SDI is allowed as an itemized deduction under state and local taxes paid on Schedule A for your federal return.

@jackkgan

Re: Can IHSS live-in provider with zero in box 1 take credits for Social security, medicare tax w...

jackkgan — Sun, 30 Mar 2025 23:25:59 GMT

Thanks DianeW777!

Yes I had 2 different employers with one of them being IHSS.

So, please confirm my understanding if you meant that it is ok to take credit for my IHSS Box 4 (social security tax withheld), box 6 (Medicare tax withheld) and CA-SDI (Box 14) though the IHSS Income is not taxable. Thanks again!