New W2 for IHSS

Forum|Forum|1 year ago
January 29, 2025
7 replies
61 views

The new rules have the California providing a W2 for In Home Supportive Services. If it is care for a disable dependent, there is no income in box 1 of the W2 and the income classified under Box 12a as II "Medicaid waiver payments excluded from gross income under notice 2014-7". When doing the California State return, the state review says you do not qualify for online submission as one of your W2s have value of 0$ or less than 1$ and by tax code cannot be submitted on line. Is this true?

SharonD007

Level 14

You don't have to mail your CA tax return if you have $0 in box 1 of your IHSS W-2. Review the TurboTax Help article How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?

For more information, refer to the CA FTB website In-Home Supportive Services and the IRS website Certain Medicaid Waiver Payments May Be Excludable From Income.

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johnr7Author

Level 2

When is go through the link, i went down the "i received a W2 with 0$ on Line 1" and follow the instructions, i go to step 5. "lets check for uncommon situations", the selection Nontaxable Medicaid waiver payments that qualify as difficulty of care payments. is not showing?

Regards,

John