IHSS W2 box 1 is zero

[caitlinpeach007]

My friend received a W2 but boxes 1 & 2 were zero while 3,4,5,6 & 14 had amounts. The recipient lived with her 24/7 so it is exempt.  How does she enter the W2 information in TurboTax?... View more

[HelenC12]

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.