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Tyy
Returning Member

How do i exempt 2018 ihss income in turbo tax? All the info i found only shows for older programs

 
7 Replies
Coleen3
Intuit Alumni

How do i exempt 2018 ihss income in turbo tax? All the info i found only shows for older programs

The instructions are the same. Customers have used this all tax season.

TurboTax can exempt income under Notice 2014-7 per the IRS instructions. 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. 

If these payments are paid to you in box 1 of form W-2 (they should not), first try to get a corrected Form W-2 from the payer. If you cannot get a corrected Form W-2, follow these steps: 

Do not enter the W-2 in the Wages & Salaries topic. Instead enter it as Other Reportable Income under the Miscellaneous Income section.

Click on Federal Taxes at the top of the screen;

At the bottom of Your Income box pick the option in blue to help me add other income, then jump to full list;

Scroll down the page to the last section titled: Less common Income and click show more;

Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;

Scroll down to the last option titled Other reportable income and select start or edit;

When it asks, "Any other reportable income?" say yes then you will make two entries:

Your first entry description would be W-2 EIN # (enter EIN number from W-2) Box 1 Medicaid  W-2 EIN # (enter EIN number from W-2) Box 1 Medicaid

Next you click "Add Another Miscellaneous Income Item," and enter this description: IRS Notice 2014-7 excludable income and enter the W-2 Box 1 amount as a Negative (-) number. 

This both shows and explains removing the W-2 income, placing a zero on Line 21 of your Form 1040. 

If your W-2 has federal or state taxes withheld, you can enter these amounts in the Deductions & Credits section under Other Income Taxes as Withholding not already entered on W-2.


Tyy
Returning Member

How do i exempt 2018 ihss income in turbo tax? All the info i found only shows for older programs

This is what throws me off- "W-2 EIN # (enter EIN number from W-2) Box 1 Medicaid  W-2 EIN # (enter EIN number from W-2) Box 1 Medicaid"  are you saying for the description box to write "w2 ein #(the actual number) box 1 medicaid" and the amount box-what would you put there?
Coleen3
Intuit Alumni

How do i exempt 2018 ihss income in turbo tax? All the info i found only shows for older programs

Did you get a W-2 with Box 1 income? That income is what you enter to exclude it.
Tyy
Returning Member

How do i exempt 2018 ihss income in turbo tax? All the info i found only shows for older programs

yes.... but what do you put in the turbo tax program under "description" and "amount"? exactly as written ..with even the "box1 medicaid"?
Coleen3
Intuit Alumni

How do i exempt 2018 ihss income in turbo tax? All the info i found only shows for older programs

VOID answer

Tyy
Returning Member

How do i exempt 2018 ihss income in turbo tax? All the info i found only shows for older programs

got it thanks. didnt see the screen shot
Coleen3
Intuit Alumni

How do i exempt 2018 ihss income in turbo tax? All the info i found only shows for older programs

I just added it for you. It's very pale.
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