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alisagesa
New Member

I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

 
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12 Replies
Coleen3
Intuit Alumni

I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

These payments are exempt from Federal Tax. CA also follows the Federal treatment. See instructions below. https://origin-www.ftb.ca.gov/aboutFTB/newsroom/IHSS.shtml

TurboTax can exempt income under Notice 2014-7 per the IRS instructions. This Notice provides that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver (Medicaid waiver) program, are difficulty of care payments and excludable as income. 

If these payments are paid to you in box 1 of form W-2 (they should not), first try to get a corrected Form W-2 from the payer. If you cannot get a corrected Form W-2, follow these steps: 

Do not enter the W-2 in the Wages & Salaries topic. Instead enter it as Other Reportable Income under the Miscellaneous Income section. Take the following steps: 

  1. Sign in to TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer);
  1. Click on Federal Taxes at the top of the screen;
  2. At the bottom of Your Income box pick the option in blue to help me add other income, then jump to full list;
  3. Scroll down the page to the last section titled: Less common Income and click show more;
  4. Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
  5. Scroll down to the last option titled Other reportable income and select start or edit;
  6. When it asks, "Any other reportable income?" say yes then you will make two entries:
  7. Your first entry description would be W-2 EIN # (enter EIN number from W-2) Box 1 Medicaid Waiver Payments, and enter the Box 1 amount as a positive number.
  8. Next you click "Add Another Miscellaneous Income Item," and enter this description: IRS Notice 2014-7 excludable income and enter the W-2 Box 1 amount as a Negative (-) number. 

This both shows and explains removing the W-2 income, placing a zero on Line 21 of your Form 1040. 

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.

IVYPIPER
New Member

I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

I haven't receive my W2 for IHSS does anyone knows the EIN number for IHSS?

DawnC
Employee Tax Expert

I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

There is not one EIN for IHSS payments.  Each state/program will have a unique EIN number.  Since the IRS is not yet accepting returns, it is best to wait for your W-2.   You risk having to amend your return and/or your refund being delayed if you submit your return earlier than necessary.  

 

@IVYPIPER 

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MaryK4
Expert Alumni

I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

No, the supplemental payment is for sales tax on the IHSS services- usually these are not included on the W2.

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I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

How do you figure out if you paid sales tax on your IHSS payments received as a provider?

KrisD15
Employee Tax Expert

I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

YOU would have sent the payment in to the state. 

If you didn't make sales tax payments, they were not made. 

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I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

The income can be exempt BUT it can also be claimed as taxable if it is beneficial for you to do so. (For the purposes of claiming the EIC and other refundable credits) US TAX COURT ruled in Feign v. Commissioner that Medicaid Waiver Payments are not necessarily nontaxable. The Court said that Notice 2014-7 does not follow the plain reading of the statute. The Feigns sued because they felt they were denied tax credits since the income was not taxed, so the Court allowed the Feigns to receive Earned Income Tax Credit and Child Tax Credit. The result of this Court Case is that Notice 2014-7 is now optional. IHSS income can be included as taxable income and you can claim credits such as Earned Income Tax Credit, Retirement Savings Credit, Child Tax Credit, etc. IF it is advantageous for you to do so. If you have any questions, please contact a qualified tax practitioner.

I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

Hi I'm having same problem. Waiting for California IHSS W-2 but ready to file now! 

Calling has not worked either. Anyone have the number to Post?

 

Thanks

DaveF1006
Employee Tax Expert

I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

It depends. I would advise filing without the IHSS W-2 and then amend your return once you have the information to report. To contact them, go to their website and look under IHSS Service Desk for Providers & Recipients, The number is (866) 376-7066.

 

If they do not send a W-2, you can file a substitute W2 in Turbo Tax by:

  1. Open your return and search for W-2. Select the Jump to link in the search results to get to the W-2 entry screen.
  2. Fill out your W-2 as best you can using the information from your last pay stub.
  3. Answer any questions until you get to the Let's check for uncommon situations screen.
  4. Check the box next to Didn't get a W-2 and select Continue.
  5. On the Let's check if you need a substitute W-2 screen, select Yes then Continue.
  6. Answer the follow-up questions. Select Print to download and print your IRS Form 4852.

Returns including Form 4852 can't be e-filed per IRS regulations, so please make any reasonable effort to receive a copy of the W2 from IHSS.

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I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

Many don’t get a w2 or 1099 and they won’t send one if you’re an in home parent provider that has non taxable income with ihss so how do we get the ein number ? Calling ihss doesn’t work either. 

DaveF1006
Employee Tax Expert

I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

All of the information about IHSS is found at the following website. Here the EIN is listed as 20-0548930.

 

@SoCal1

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I have a W-2 for IHSS that I entered for Federal. Do I enter it again on the Calif side that says In-home Support Services Supplemental Payments?

Thank you I’m gonna give it a try ! 

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