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You are correct that you can't efile with a 0 in box 1. You could put $1 in the box and probably efile.
But you don't need to include the W-2 at all if the reported value for health care costs is in box 12 (DD). This is just for informational purposes and doesn't get transferred anywhere on your return.
I just efiled by putting $1 in Box 1 of my W2 showing 0 income. It went. I just hope it doesn't create any problem with IRS computer trying to match W2 sent by my employer and my return.
I have the same issue so I'm gonna put it a 1. Thanks for the help. Hopefully no big deal but what a pain!
Entering a "1" is the correct approach and will not create a problem.
Is it still recommended to enter $1 in the blank box 1 of the W-2? Could this be considered as falsifying your tax information? Why not just exclude the W-2 with blank box 1 and informational only box 12a?
Does this happen to be a W2 from IHHS?
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.
Ensure you entered it according to these instructions: How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?
This is on a W2 from the company I had worked for until 2023. They had paid for COBRA during 2024, but I did not earn any income from the company in 2024. DD is the reporting code in box 12A. Thanks!
Since the information reported in Box 12 Code DD is not needed on your tax return, I recommend omitting it. The IRS computerized matching system may pick up the difference between $1 and zero, but you wouldn't be penalized for "falsifying" information- the tax on $1 rounds to zero.
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