How to file IHSS Medicaid waiver payments when W-2 has 00 in all boxes except box 12a.

[Vanessa A]

Since you received a W-2 you will need to include it in your return if you are already filing a return, however, you can choose to either include it or exclude it for EITC calculations. The best way to enter this, since you have all 0's elsewhere is by entering it the same way you did in previous years as Nontaxable Medicaid Waiver Payments not reported on a form W-2 or 1099.  This will again have the income backed out for you the same way it has in the past.  The fact that you have a W-2 will not change how the income is treated. It is just telling the IRS that it is there so even though it is not taxable income, it is best to report it if you are otherwise filing a return.

[Rumpelstilschen]

Thank you.  For some reason, there is no 'Mark as Best Answer' button on this page, or I would have clicked that!