Box 12 ii issue

[Ladyasa]

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?

[CatinaT1]

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?

[Ladyasa]

Ok so i will follow those instructions or do i have to pay that amount? I don’t fully understand i am sorry

[Ladyasa]

I looked again its Box 12a ii. Its in that box. This is a ihss w2

[CatinaT1]

Delete what you have entered and then reenter the W2 according the the instructions in the article.  The income is not taxable. 

[Ladyasa]

Bless you!!! Thank u so

much

[Ladyasa]

It asked to verify box 5. Keep it blank?

[CatinaT1]

Yes

[Ladyasa]

I received a rejection for my state return. The app states Reject Code F540-660 And Reject Code F540-670 Reject Code F540-400. 

[Ladyasa]

I received a rejection for my state return. The app states three Codes F540-660 , F540-670 and F540-400. 

[KeshaH]

Does the W-2 that shows $0 in box 1 have an amount in boxes 16 and 17? If so, this return can't be e-filed. You will need to print and mail the return to California.

@Ladyasa 

[Ladyasa]

I was told to leave boxes 1-8 empty above.  My issue was my w2 has around 1600 in box 1, box 3 43k and 42k amount in box 12ii when i fill out my taxes it comes back that i owe 40k so i was sent to instructions it worked the federal efile was successful but the state rejected. How would i mail it in? Im so confused now wish i was told this 

[ThomasM125]

Here are the mailing addresses for California tax returns from the State of California Franchise tax Board: