Can't E-file with W2 having $0 in Box 1- IHSS provider with exempt income

next_milenium · Dec 24, 2020 2:46:09 PM

I am an IHSS provider with live-in client. This makes the income tax exempt. My W2 is correct and shows $0 for Box 1 and 2. But I do have Social Security Tax and Medicare withheld in Boxes 4 and 6. Since box 1 contains $0, Turbotax won't let me E-file. I'd like to E-file for convenience and receiving my refund faster. I've searched this forum and there seems to be 3 different recommended ways to get around this: 1) Enter the income as Less Common/Misc Income.2) Enter $1.00 as income in box 1. 3) Don't bother reporting the W-2 because my income is exempt anyways. So, which way should I go? Will any of the above workaround trigger IRS audit? Any recommendation from the experts would be greatly appreciated. Thank you.

If you have box 3 income, put it in box 1 and mark IHSS on the next screen.
If you don't have any dollar amounts on your W-2, you qualify to exclude the income under IRS Notice 2014-7, and you don't expect to qualify for Earned Income Credit or Additional Child Tax Credit, then you don't need to enter the W-2 at all.

Reference: How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?

@rfclub

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