Error message

[Rumpelstilschen]

Hi,

When preparing to file, after passing error check, get following error message "We won't be able to E-file your return ... 'One of your W-2s doesn't have an amount in box 1...'"

The only W-2 we have has no amount in Box 1, has an amount in Box 12a, which I entered, along with code II (Medicaid waiver payments).

Is this a bug in TurboTax, or do we really have to file by mail?

[LindaS5247]

You can mail in your return or you can leave your W-2 out of TurboTax and just save it for your records. ‌That way you can e-file.

You stated there is nothing in Box 1 of your Form W-2. ‌An e-filed return containing a W-2 with no amount in Box 1 (Wages), would be rejected by the IRS.

[Rumpelstilschen]

Hi,

Thx for the quick reply, but please let me add some color to my question:

This is the first year that a W-2 form has been issued, although it is still tax-exempt.  Previously, this payment would be entered under 'Miscellaneous Income - Nontaxable Medicaid Waiver Payments not reported on a form W-2 or 1099', and Turbotax would then back this amount out on Line 8, Form 1040.

This option still exists in Turbotax 2024, but, in this case, I DID receive a W-2.  It doesn't feel right to just not enter the W-2, and I fear if I use the 'Miscellaneous Income' method, the IRS will think I received it twice.

Would you recommend I just enter '$1.00' in Box 1 of the W-2 to trick Turbotax into letting me e-file?       

[CatinaT1]

This article will tell you how to enter based on what you received: How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?

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.