Need help with filing as live-in IHSS provider - QUAL OT?

[SpC15]

I am a live-in IHSS provider for my family member.  My income is tax exempt and it's on box 12a-II. Box 1 is $0.  My W2 shows a "QUAL OT" amount on box 14.  Do I need to include it? I am inputting W2 manually.   I believe the OT deduction does not apply to me because my income is non-taxable.   I am filling jointly with my spouse who was a W2 from his employer.  

[DianeW777 · Accepted solution]

Employers try to provide correct W-2s, however sometimes assistance is needed to enter these wages.

Enter the same amount in box 1 as there is in box 14. Once you do this you will be able to select that these wages were 'Nontaxable Medicaid waiver payments not reported on a W-2 or 1099'.

• How do I enter my tax exempt Medicaid waiver payments from IHSS in TurboTax?

No, since your income is not taxed, then you are not allowed to reduce other income by the amount of qualified overtime.

• You generally cannot use the federal 'no-tax on overtime' deduction if your Medicaid Waiver (IHSS) wages are already excluded from gross income under IRS Notice 2014-7. The deduction only applies to taxable federal income, and you cannot double-dip by excluding income and then taking a deduction on that same income.