Qual OT amount in Box 14 but Box 1 is $0. Medicaid Waiver.

[Jim-Bob-61]

I'm finalizing my return and get an error on Federal Return because I have $5634.51 in Box 14 as Qual OT but, box 1 is $0 because this is an IHSS Medicaid Waiver amount. Box 12a has II and what I would have earned had it not been non-taxable. I need to fill out the W2 info because this affects my gross income for Medicare. If I leave the amount in box 14, it does actually increases my return. If I remove it, obviously, it decreases my return. Not sure how to get past this dilemma. Thanks for any help.

[MaryK4 · Accepted solution]

Can you clarify what you mean by theis W2 affects your gross income for Medicare?  

If you are excluding the income from taxes, you are not eligible for the overtime premium deduction.  If this is the case, you should just not enter the Box 14 Overtime Premium or indicate it is Other from the dropdown list.

[Jim-Bob-61]

The amount in box 12a is used in total income which is used by Medicare to determine if I have to pay IRMAA. It is then deducted before determining AGI. I was just concerned that changing box 14 would flag the return. Thanks for the information.