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Level 2
posted Mar 7, 2023 11:00:51 PM

Can I Amend A Federal Income Tax Return With A 1040X If The IHSS Info On The W-2 Was Inputted Incorrectly? For Tax Year 2022 and 2021?

I filed a Federal income tax return with a tax pro and the IHSS info was added incorrectly. I don't think the tax pro knew how to input the IHSS info. Instead of leaving box 1 with 0.00 as stated in the W-2 form, she asked me for the end of the year paycheck stubs with the total gross income amount so she could put the amount in box 1. Is there a way to amend the Federal income tax return with a 1040X? If so, how do I go about filling out the 1040X correctly? Please help. Thanks.

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1 Best answer
Expert Alumni
Mar 8, 2023 5:07:51 AM

Yes, you can amend your tax return to exclude the IHSS payments from taxation.

 

You will exclude the income by reversing the amount of the income reported in box 1 of form W-2 in Other Income.

 

To do so, open your return and follow these steps:

 

  1. Click on Federal in the left-hand column, then on Wages and Income on top of the screen
  2. Scroll down to locate the Less Common Income section
  3. Click Show more and click Start next to Miscellaneous Income at the bottom
  4. On the next page, click Start next to Other Reportable Income.
  5. In the "Description" section, enter "IRS Notice 2014-7 excludable income" and in the "Amount" section, enter the W-2 box 1 amount (or amount of Medicaid Waiver Payments) as a negative (-) number.

Please see this TurboTax article for instructions on how to amend your tax return in TurboTax.

3 Replies
Expert Alumni
Mar 8, 2023 5:07:51 AM

Yes, you can amend your tax return to exclude the IHSS payments from taxation.

 

You will exclude the income by reversing the amount of the income reported in box 1 of form W-2 in Other Income.

 

To do so, open your return and follow these steps:

 

  1. Click on Federal in the left-hand column, then on Wages and Income on top of the screen
  2. Scroll down to locate the Less Common Income section
  3. Click Show more and click Start next to Miscellaneous Income at the bottom
  4. On the next page, click Start next to Other Reportable Income.
  5. In the "Description" section, enter "IRS Notice 2014-7 excludable income" and in the "Amount" section, enter the W-2 box 1 amount (or amount of Medicaid Waiver Payments) as a negative (-) number.

Please see this TurboTax article for instructions on how to amend your tax return in TurboTax.

Level 9
Mar 8, 2023 5:10:49 AM

No, your return was prepared by a professional and that professional needs to do the amend.  You will not have a return in TurboTax to amend.

Level 15
Mar 8, 2023 5:14:28 AM

Go back to the preparer and have them amend the return FOR FREE  ... all they have to do is remove the W-2 that had  NO income in box 1 ... they should have never altered the original W-2 form to start with.  Talk to their manager if they don't understand what  you mean ... have them read the IRS instructions.