Entering a W-2 with 0 in box 1 for CA IHSS payments results in incorrect CA state return

[agindustry]

I followed the updated instructions below but noticed that the Ca state return is incorrect. It is deducting the payments twice on the CA adjustments column B so I think it is a bug that needs to be fixed

I received a W-2 with $0 in Box 1

1. Sign in to TurboTax and open your return.
2. Select Search, enter w-2, and select Jump to w-2.
3. Enter all your W-2 info.
4. 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.
5. Enter the amount of Medicaid waiver payments into the difficulty of care payment you received from IHHS box.
   • This is the same amount reported in boxes 3 and 5 of your W-2.
   • Your payments are nontaxable, but TurboTax uses this number to calculate credits you may qualify for.
6. When you get to the Earned Income Credit section in Deductions and Credits, we’ll ask if you want to add your Medicaid waiver payment to your income for this credit. You can answer based on what benefits you most.

[MonikaK1]

Thank you for reporting this issue.

In order for us to confirm and troubleshoot this, you can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions for TurboTax Online users: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

If you are using TurboTax Desktop please comment back and I will give you those instructions.

[agindustry]

I am, using the desktop version.  I did end up calling support and working with a representative. Turbo Case [phone number removed].  He connected to my desktop and saw the issue firsthand. He had to contact upper-level support and they retrieved my diagnostic file. The technician had us manually enter an adjustment under Other Adjustment to Wages.  However, there should be an update made so that this is handled automatically so that others do not have this problem.  Let me know if you still need my file after reviewing the case number I provided.  Another issue that comes up is that I am unable to file electronically.  I get a message indicating that since my W-2 has 0 for Box 1, I have to file by mail.

[agindustry]

[phone number removed] is the case number. Hopefully it is not removed again

[agindustry]

[phone number removed])

[CatinaT1]

If you enter $1 in box 1 of the IHHS W2, this will not change the result of your return, but will let you e-file.