Box 12 ii issue

Forum|Forum|1 year ago
March 26, 2025
1 reply
4 views

I have my w2 i did the soc form but my w2 has around 1600 in box 1, box 3 43k and this never happened before a 42k amount in box 12ii when i fill out my taxes it comes back that i owe 40k i am feeling like this is an error. What should or could i do is this correct?

Not A Product Question

CatinaT1

Level 15

Sounds like you have a W2 for Difficulty of Care Payments.

TurboTax can exempt income under Notice 2014-7 per the IRS instructions for Medicaid Waiver payments from IHHS. 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. Additionally, you can choose to use this income to calculate Earned Income Credit. Regardless, the income will remain non-taxable.

Ensure you entered it according to these instructions: How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?

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