IHSS W2 box 1 is zero

If your friend's IHSS W-2, Box 1 is zero, you don't include that W-2 on your tax return. IRS Notice 2014-7 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. 

• If your friend's IHSS W-2 has federal or state taxes withheld, you can enter these amounts in the Deductions & Credits section.

1. Scroll down to Estimated and Other Taxes Paid, Income Taxes Paid Start/Revisit.
2. On the Income Taxes Paid screen, scroll down to Other Income Taxes Paid in 2021, Withholding not already entered on W-2 or 1099, Start/Revisit.
3. Continue with the onscreen interview until complete. 

For more information, refer to IRS FAQs.