IHSS Tax Exempt - Can't E-file with W2 having $0 in Box 1

[JohnQT]

With all due respect to the all of the "Employee Tax Expert" commenters in this thread, we are receiving mixed and conflicting advice here!  Do or do not report a W-2 with 0.00 in box 1, do or do not add a dollar to box 1 to make it pass the TurboTax e-File threshold, do or do not be concerned with changing these numbers that may or may not be reported to the IRS, etc.  It's pretty disappointing for what amounts to a "government-affiliated" program...

IMHO this subject of W-2s with 0.00 in box 1 deserves an actual KB article of its own.  Ditto for the subject of the requirements (all of them) that TurboTax (and the IRS) imposes on returns that are intended for e-Filing.

Thanks for listening...

[bartzumbari]

The problem with this advice in my case is there are amounts in the State section (boxes 16 et al) so I can't just remove the w-2.  I don't see a way in Turbotax to not have a w-2 for the federal return, but include the w-2 only for the state return.  Can this be done?

[JotikaT2]

Please see this link for guidance on how to enter the W-2 information.  This allows you to enter any applicable boxes and leave the W-2 input.  You will need to check a box under the uncommon situations screen to bypass any possible e-file error messages.

@bartzumbari 

[bartzumbari]

Thanks, I've seen that advice before.  Boxes 1, 3, 5 etc in the federal section are all empty which leads to Turbotax preventing e-file.  I don't qualify for the deductions thing.  The advice regarding "if I don't have any dollar amounts in my w-2" doesn't work because the state section has dollar amounts.  Would be nice if the IRS would just get rid of the rule.

For next year, I'm looking into seeing if I can get the employer to put something in those boxes.

[mylilcowboy44]

Hello! Unfortunately, I filed my 2023 taxes and only got back $2070. I get paid through IHSS for my daughter who is a minor, disabled child. I didn’t seem to qualify for anything. My W-2 from IHSS showed roughly $50,000 a year and I am unsure how to amend it? I have never had such a low refund…

[JotikaT2]

Please see this link for steps to help you amend your return.  Then you can follow the steps in this link to ensure you entered your IHSS payments correctly.  

If you are unable to electronically file your amended return, you can always mail it.  Mailing does take longer to process but as long as you amend to report everything correctly, you can ensure you receive any refunds you are entitled to if your original return was not filed correctly.

@mylilcowboy44 

[tmartinbell]

If 0 in box 1 of the W2, but amounts in other boxes such as medicaid waiver payment, ENTER THE W2! Do not omit. It's not a blank W2. You may not be able to e-file but you can mail the tax return. 
You have the option to included your payments as income, making it taxable, to qualify for EITC. Otherwise, not including it might affect your eligibility. 
Never omit a W2 with amounts in ANY box. If you have to mail it, mail it. Do not add to it, do not subtract from it. Do not shortcut. There are no workaround unless you want an audit.

[Alberto Ochoa]

I had the same issue, but I had two W2 one for each of my sons. The workaround does work, but if you have two W2 from IHSS that are Tax Exempt. You will need to enter different amounts for each W2 in box 1. Or  else the system will pick it up as a duplicate W2. On the first W2 I entered $1 and on the second I entered $2. This allowed me to be able to E-file. I was going crazy I hope this helps someone in a similar situation out. 

[thanapooms]

Hi I add W2 for IHSS for turbo tax delux 2024

after put $0  in box1 and complete

for Let’s check for uncommon situations.

there is no check box for  "Nontaxable Medicaid waiver payments"

what I have to choose then?

[KrisD15]

To clarify, did you enter anything in any of the other boxes?

[thanapooms]

i did fill all $0.00 into all box that list in My W2  exact. ( box1-6 ,7-11, 16-19  fill with $0  because it show in W2)

and in the end I cannot send E-file. so I did search for answer. some said just fill $1 in box one. but one of you said fill with $0  and need to check box  "Nontaxable Medicaid waiver payments"   but it is not show up.

[Gnamyo]

Did you do the 1$ trick ? Did it work ? Having the same issue. 

[Gnamyo]

Did you do the 1$ trick ? Did it get accepted ?

[Alberto Ochoa]

@Gnamyo  Yes I did the $1trick. My taxes got accepted. 

[CatinaT1]

Ensure you are entering according to these instructions: How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?