Can't find "Nontaxable Medicaid waiver payments" under "Let’s check for uncommon situations."

[jackkgan]

Following up from My previous post , I am trying to find out how to enter IHSS live-in provider W2 with Zero in Box 1.

1) I don't see "Nontaxable Medicaid waiver payments" under "Let’s check for uncommon situations." in step 5 of the instructions that were given below in that post.

If you received a W-2 with $0 in Box 1:  

1. Sign in to TurboTax Online, click Continue to your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer);     
2. Click on Federal Taxes, and then click on Wages & Income;     
3. Under Wages and Income, click Start;      
4. Click on Work on my W-2, and enter the information as reported on your W-2.     
5. After entering all your W-2s, you will see the screen, Let’s check for uncommon situations. Next to Nontaxable Medicaid waiver payments, check the box.  
6. You will enter the amount of Medicaid Waiver Payments into the box asking for the total amount of difficulty of care payment you received from IHHS. This will be the same amount reported in Boxes 3 and 5 of your W-2.  
7. When you get to the Earned Income Credit section under the  Deductions and Credits portion of your return, you will be asked if you want to add your Medicaid waiver payment to your income for this credit. You can try it both ways, including it and excluding it from the calculation for the credit and see which way benefits you most

2) Box 15 seems to be empty in Turbox after importing the W2 , but it shows CA in my W2. So I added that manually. Hope that's ok.

3) All the values got imported except box 12a II which has 38k in my W2. Please advise what to do.. Should I manually choose drop down 12 A in Turbo Tax which says Uncollected Social Security and that 38K manually, should I choose 12A II which says "Medicaid waiver payments excluded from gross income under notice 2014-7?

[CatinaT1]

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

[jackkgan]

Thanks so much. But the instructions in How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax? don't seem to match the latest TurboTax screen. Example :On the Let’s check for uncommon situations screen, select the box next to Nontaxable Medicaid waiver payments that qualify as difficulty of care payments.

But there is NO "Nontaxable Medicaid waiver payments that qualify as difficulty of care payments.:" option in the "Let’s check for uncommon situations screen" Please let me know if I am missing anything. Thank you.

[KrisD15]

The list you  posted does not have the option of choosing "Nontaxable Medicaid Waver Payments..."  

and it should. 

No, you should not alter Box 12

You should delete that W-2 altogether, 

close out TurboTax and then re-open and MANUALLY enter the W-2. 

I think something got messed up when the W-2 was imported. 

Let us know if that solves the problem or not. 

[jackkgan]

Thanks KrisD15. As per your suggestion, I deleted my W2, closed and re-opened Turbo Tax (Premier desktop version on MAC) and re-entered all the numbers in W2 manually. I had to enter the Box 12 manually, and also Box 15. But I still don't see the option for "Nontaxable Medicaid Waver Payments..."  under "Let's check for uncommon situations".  I see different instructions from different tax experts ThomasM125,  AmyC and CatinaT1  Not sure which one to follow. (Ref: https://ttlc.intuit.com/community/taxes/discussion/re-ihss-live-in-provider-zero-income/01/3466131#M... ). Thank you.

The screen below says box 5 value is incorrect. But it is matching my W2. Not sure if it is because I have 2 W2s from 2 jobs with the other one having non-zero value in box 1.

[jackkgan]

Aah ok! I realized that the screen "Let's check for uncommon situations" has the "Nontaxable Medicaid Waiver..." value if I don't enter the values from Box 12 in my W2 and leave it empty as shown in the 2nd screen shot below. Please confirm if I should NOT enter the values from Box 12 II into TurboTax while entering the W2. 

The instructions in https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-w-2/qualified-medicaid-waiver-payme... say "Enter all your W-2 info as shown on your form, except Box 1" but they don't say that I should NOT enter Box 12. Please confirm if the instructions are incomplete or am I missing something in my understanding. Thank you.

If I don't enter the values in Box 12 II of my W2 into TurboTax, then below is shown "Let's check for uncommon situations"

[KrisD15]

YES, enter Box 12.

The instructions have changed I see. 

The payments have been reported differently over the years as well, as you may know, and it seems the code in Box 12 is making everything so much easier. 

The code in Box 12 (when present) tells TurboTax what the W-2 is for. 

Since you DO have a code in Box 12 that code is telling TurboTax the W-2 is for Difficulty of Care Payments, it didn't need to ask on the following screen. 

You say you have zero in Box 1.

In that case-

Use the number listed in Box 3 and enter that same number in Box 1 on the W-2 entry screen for that W-2. 

The amount you enter in Box 1 should not be taxed as income, but could affect your Earned Income Credit.

You have the option of using ALL or NONE of the income when calculating the Earned Income Credit. 

SOMETIMES more income results in a better credit, but sometimes more income lowers the credit. 

Look at the credit with and then without that added income. 

If entering the W-2 helps the credit, use it.

If entering the W-2 hurts your Earned Income Credit, change Box 1 back to zero. 

You need to claim all or none, so either zero or the same amount as Box 3. 

[playpianoking]

I believe this is a sub-optimal method for the main reason being that you CANNOT e-file your federal return if you have a Box 1 with zero wages.

If you have box 1 with no wages listed, INSTEAD, you should go to Personal Income > Miscellaneous Income > Other income not already reported on a form W-2 > (click next a few times, and you'll land on 'Certain nontaxable medicaid waiver payments not reported on W-2).  It mentions this is where you can add the income you have received for purposes of claiming a credit or tax benefit.

My method is the way that allows you to e-file your return.