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marismail3
New Member

I did not get any taxes deducted from my IHSS check for 2016, I remember mailing my w4 with one dependant but they never did deduct any zero taxes! What do I do now???

Will I need to pay for what they didn't deduct from taxes?? I am a provider for my daughter and only got 47 hours a month.
1 Best answer

Accepted Solutions
VolvoGirl
Level 15

I did not get any taxes deducted from my IHSS check for 2016, I remember mailing my w4 with one dependant but they never did deduct any zero taxes! What do I do now???

No that is not taxable income.  You were lucky not to have withholding taken out.  Are you in California?

There are a couple ways to enter a W2 for IHSS wages.

1. Enter the W2 as normal wages on line 7.  

Then make an entry on 1040 line 21 Other Income to offiset it by going to
Federal Taxes
Wages and Income
Scroll way down to the end  - Less Common Income
Click start or update next to the last one "miscellaneous income"
Then the last one for Other Reportable Income
For description enter “Notice 2014-7” . Enter the amount with a minus sign (-) in front of it.

2.  Or when you enter the W2 it gives you the EIC credit for it (which would be wrong) see this FAQ
https://ttlc.intuit.com/questions/2635384-qualified-medicaid-waiver-payments-on-a-w-2-show-as-earned...

So you either completely exclude the W2 from your return or enter it under Miscellaneous Income.   To enter it as Misc Income use the same steps as above and you will make 2 entries.

Your first entry description would be W-2 EIN # (enter EIN number from W-2) Box 1 Medicaid Waiver Payments, and enter the Box 1 amount as a positive number.

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.

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4 Replies
VolvoGirl
Level 15

I did not get any taxes deducted from my IHSS check for 2016, I remember mailing my w4 with one dependant but they never did deduct any zero taxes! What do I do now???

No that is not taxable income.  You were lucky not to have withholding taken out.  Are you in California?

There are a couple ways to enter a W2 for IHSS wages.

1. Enter the W2 as normal wages on line 7.  

Then make an entry on 1040 line 21 Other Income to offiset it by going to
Federal Taxes
Wages and Income
Scroll way down to the end  - Less Common Income
Click start or update next to the last one "miscellaneous income"
Then the last one for Other Reportable Income
For description enter “Notice 2014-7” . Enter the amount with a minus sign (-) in front of it.

2.  Or when you enter the W2 it gives you the EIC credit for it (which would be wrong) see this FAQ
https://ttlc.intuit.com/questions/2635384-qualified-medicaid-waiver-payments-on-a-w-2-show-as-earned...

So you either completely exclude the W2 from your return or enter it under Miscellaneous Income.   To enter it as Misc Income use the same steps as above and you will make 2 entries.

Your first entry description would be W-2 EIN # (enter EIN number from W-2) Box 1 Medicaid Waiver Payments, and enter the Box 1 amount as a positive number.

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.
marismail3
New Member

I did not get any taxes deducted from my IHSS check for 2016, I remember mailing my w4 with one dependant but they never did deduct any zero taxes! What do I do now???

Yes, I live in California, I'm sorry I know ithat was a silly question but I had no idea what to do with my W2, so I still have to file taxes correct? But I won't owe the IRS?
VolvoGirl
Level 15

I did not get any taxes deducted from my IHSS check for 2016, I remember mailing my w4 with one dependant but they never did deduct any zero taxes! What do I do now???

I think if that's all  you got you do not have to file a return.  It is not taxable and you have no withholding to file for a refund.
marismail3
New Member

I did not get any taxes deducted from my IHSS check for 2016, I remember mailing my w4 with one dependant but they never did deduct any zero taxes! What do I do now???

Thank you for your help!!
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