Medicare Waiver Payment Box 1 empty

[lydiap]

So I have a Medicaid Waiver Payment and the only info listed is 

box 12a- II $....

box 15- FL

box 16-$....

Since FL doesn't have state taxes, I left 15-16 empty. Even though I coded as II, it will not let me e-file because of Box 1, which is empty. When I get to the "Let's check for uncommon situations", there is nothing about medicaid waiver payments. Also tried going through Miscellaneous Income and filling it out in the Medicaid section, but it did nothing to change my problem. Also made sure selected NO on including it as income for EIC. SOOOO, when I put a number in box 1, it reduces my income. How do I fix this?

[DawnC]

If you don't have any dollar amounts on your W-2, you qualify to exclude the income under IRS Notice 2014-7, and you don't expect to qualify for Earned Income Credit or Additional Child Tax Credit, then you don't need to enter the W-2 at all.   Keep it with your tax records.   

[lydiap]

"If you don't have any dollar amounts on your W-2, you qualify to exclude the income under IRS Notice 2014-7, and you don't expect to qualify for Earned Income Credit or Additional Child Tax Credit, then you don't need to enter the W-2 at all." 

I see where it says this specifically, but there is a dollar amount in 12 and 16. Does it still apply?

[CatinaT1]

Yes, this still applies. 

[Shorouk]

Please can I ask you a question? I work part time as a care giver for my mother only 9 hours a week, anyways when I receive the w2, box1 and box 2 are empty on the w2, but box 3,4,5,6 have amounts should I enter the amount on box 3 as my wages, tips, and other compensation? or i don't need to file a return for this job at all??Please let me know. Thank you for your help. 

[AmyC]

The IRS defines  earned income. You can use IHSS income for child tax credit and earned income credit, if you qualify. You have the option to exclude the income as well.

If you need to enter an income in box 1 you can enter $1 and then exclude the income.

@Shorouk