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?
You don't have to mail your CA tax return if you have $0 in box 1 of your IHSS W-2. Review the TurboTax Help article How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax?
For more information, refer to the CA FTB website In-Home Supportive Services and the IRS website Certain Medicaid Waiver Payments May Be Excludable From Income.
When is go through the link, i went down the "i received a W2 with 0$ 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
I too am not seeing the "Nontaxable Medicaid waiver payment" in the uncommon situations
There is no Nontaxable Medicaid waiver payments that qualify as difficulty of care payments option available
I thought it was fixed. I went on and went to the form mode. On line 13a there is a field Nontaxable Medicaid waiver payments that qualify as difficulty of care payments checked. When i do the final review for turbotax it still says i cannot do an online filing due to 0$ in line 1 of W2?
I still don't see it in the interview when finishing the W2 - only options seen below are
A workaround for this is to enter $1.00 in Box 1 when making your W-2 entries. This should prevent the IRS from rejecting the e-file. You will be taxed on an extra dollar, but you are avoiding the cost of stamps and printing your return.
Also Thomas125 states in this post "If your income is exempt and you didn't have any tax withheld, then you can just leave the W-2 off of your tax return, provided your tax does not change when you remove it".
Your income is exempt if if the care recipient permanently lives with the caregiver, and the caregiver has completed form SOC 2298.
As an FYI, Nontaxable Medicaid waiver payments that qualify as difficulty of care payments is listed in Box 12 of the W2 and is coded II. it is not listed on the screen that is posted above.