About Live-In-Self-Certification Form SOC 2298

[TaxGuyBill]

@banannamouse   Does your W-2 have an amount in box 1?  If so, go back and double check your W-2 to check what you entered for box 2 (you may have forgotten a decimal point).

[banannamouse]

Yes, my W-2 has an amount in box 1. For my box 2 i entered in the amount that was listed exactly on my form W-2.

[TaxGuyBill]

I just re-read that error message, and I missed that it included "Line 21" as part of the computation.

It sounds like you are going to need to mail the tax return.

[banannamouse]

I think I found out why I'm getting this error. For my form 1040 line 64 (Federal income tax withheld from Forms W-2and 1099) I entered in my Federal Income tax withheld, which is a positive number, but it needs to be less than line 21 (Other income), which I entered in my notice 2014-7 as a negative value, thus giving me an error, since line 64 needs to be less than line 21, which it can't since it's a negative value.  Has anyone seen this error before and know how to fix it?

[TaxGuyBill]

It needs to be less then the total of those lines that it listed.  In other words, if that is your only income, your total income is $0.  Because you had withholding more than $0, you can not e-file.  You need to file by mail.

[banannamouse]

Can someone tell me how to file an ammended return for last years tax return? Do i need to file a 1040x form inorder to get my taxes back? If so, which lines need to be changed?

[TaxGuyBill]

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed"...>

[stephywon]

Hi,

How did you back out the income reported on W-2?  I am a live in provider and IHSS reported income.  Now I have lump sum taxes owed to IRS which is not correct. 

Thanks.

[MarilynG1]

@stephywon Probably the cleanest way is to enter the income under 'Miscellaneous Income' as 'Other Reportable Income'.  You can then type in a description 'Non-Taxable IHSS Income'.

Then make another entry in the same place as a negative number in the same amount, with description 'Adjustment for Non-Taxable Income'.

The two entries will result in no taxable income.

Click this link for more info on How to Report IHSS Income. 

[45EZAP24]

This was very helpful some terms have changed but got it done!!!

[taxnewbie2021]

My apologies if this seems like a dumb question as I am new to taxes and I could not find any answers elsewhere, but what would be the pros and cons of having the IHSS wages excluded from Federal Income Tax and State Income Tax? 

The IHSS wages will be my only source of income and from my limited understanding, I will not receive a W-2 and will technically have $0 as reportable income. Does this mean I do not have to pay taxes on the wages earned and will not need to file a tax return? Will I still be able to qualify for Unemployment benefits, health insurance, and social security?

[RCxRC]

You should still get a W-2, as you will still have to pay FICA and Medicare.  The exclusions are only for State and Federal Income Tax purposes.  The W2 can then be used to qualify for the earned income credit (EIC) or the additional child tax credit (ACTC), as well as other services, including Cal-Fresh, etc.

https://www.cdss.ca.gov/inforesources/ihss/live-in-provider-self-certification

Live-in provider self-certification

https://www.cdss.ca.gov/Portals/9/FMUForms/Q-T/SOC2298.pdf

SOC 2298 (ca.gov)

[KrisD15]

You do not owe nor pay any INCOME tax on IHSS wages. No Federal and no state tax. 

You also do NOT pay Social Security (FICA) tax, so you may still be eligible for Social Security based on your other previous work history, but your IHSS wages are NOT increasing your Social Security Account. 

Although not taxable wages, the income DOES count for credits, such as the Earned Income Tax Credit, which is why you may want to file and claim that income.  

@taxnewbie2021

[RCxRC]

Please follow the link (above) to the CDSS website.  It explains having the choice of having all, a portion, or none of one's income as a Live-In Caregiver reported, depending on your situation.  It also explains withholding, and has a link to relevant forms & info.