Hello everyone,
I am a live-in provider for a sibling family member - no one else and no other sources of income - and filed the live-in certification in 2016 where only Medicare and Social Security taxes are deducted on the federal level, and SDI deductions on the state level. No FICA or state taxes were ever deducted or withheld. Every year since 2016 my W-2 had Box 1 and Box 5 contain the same total earnings received that year. I would enter every thing normally in TurboTax and then I'd enter the same number as a negative number under Other Reportable Income under the Miscellaneous Income section. Since 2019 I've also contributed to a regular IRA (Secure Act IRC §§408(o), 415(c)(3); SECURE Act §116) and also file Form 8606 for it. I also file as single and not as Head of Household and do not file for EITC.
IHSS sent me a message in 2023 asking me to re-certify for being a live-in provider which I did. When I got my 2023 W-2 I didn't pay close attention to it and waited until early October to file, only to notice that Box 1 and Box 5 of my W-2 are different. Box 1 has the amount from the beginning of the year until the day I was asked to re-certify, and Box 5 has the total amount for the whole year ; pre and post re-certification.
My question is what number would I enter as negative in the Other Reportable Income under the Miscellaneous Income; Box 1 or Box 5? In previous years and since both were the same it didn't matter.
Also, it seems that for 2024 Box 5 will be the total amount received but Box 1 will be zero and unlike previous years. Would the same apply for the Other Reportable Income under the Miscellaneous Income section? And, would I still be able to make IRA contributions? Nothing has changed in my paystub deductions as far as Medicare and Social Security, and no FICA is being deducted.
Thank you.
