Can't file online because IHSS W2 box 1 is 0, as a live-in provider. Any way to avoid the mail-in filing and be done with it online?

[CatinaT1]

Yes.

TurboTax can exempt income under Notice 2014-7 per the IRS instructions. This Notice provides that certain payments received by an individual care provider under a state Medicaid Home and Community-Based Services Waiver (Medicaid waiver) program, are difficulty of care payments and excludable as income. You can choose to use this income to calculate Earned Income Credit. Regardless, the income will remain non-taxable. 

   

  

1. Sign into TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer); 
2. Click on Federal from the menu on the left-hand side and then click on Wages & Income at the top; 
3. Click Edit/Add next to Job (W-2);  
4. click on Add a W-2; and enter the information as reported on your W-2. 
5. After you have entered all your W-2s, you will see a screen that looks like this: 

You will then get to choose if you want to include the income for Earned Income Credit or not. 

For more information, refer to IRS Notice 2014–7, 20144 I.R.B. 445 and the IRS FAQs. 

[Rider2]

Got it. What should I put on the next screen? The amount in Box 3 or 5? or just 0? 

When I put the amount in the box 3 in the box below it increases my return but I have a feeling that since box 1 is 0 I shouldn't put any amount in the box below.

[Rider2]

I checked the "nontaxable Medicaid waiver..." option for our W2's with 0 in box 1, and put nothing in the box asking "Enter the total amount of difficulty of care payments you received from ...",

but still get this error 

[CatinaT1]

You will want to enter an amount here, likely the amount from box 3.

Make sure you have your W2 entered just like it is, all boxes. Then here, you will enter the amount (box 3) that was Medicaid waiver payments. If you enter 0 here or don't put an amount, you are not able to efile.

[Rider2]

Hi again @CatinaT1, still can't file even with entering the amount from box 3/5 in there, I'm still getting the 0 in box 1 error. Any thoughts?

[ysun]

Hi, After following the steps you suggested and selected: Nontaxable medicare waver...

I did not see what you said: "You will then get to choose if you want to include the income for Earned Income Credit or not. "

Could you please clarify?  Thank you!

[CatinaT1]

I see you have several questions on this.

The ability to choose if you want to include the income for Earned Income Credit is found later in the Deductions & Credits section under Earned Income Credit.

Even if you didn't file with this W2, Social Security and Medicare Wages and withholdings would still be reported. 

If you have other questions, please include them all in a single post.

[shykumar]

Hi - I did everything that was suggested in this thread but still get the error that I cannot efile. Any suggestions?

Thanks

[ysun]

It worked for me after putting $1 in box 1. You will be asked "How much of the 1.00 in box 1 is difficulty of care payments?" with three choices: All of it, None of it, and Some of it.  I selected None of it.  I then entered the amount in W2 box of 3 and 5 into the box asking for the total amount of difficulty of care payments I received. By doing so, the unable to e-file error is gone, allowing me to continue with e-file process.  Hope this helps.

[shykumar]

So you were able to efile successfully? I was under the impression that the steps suggested by checking the box  that says "Nontaxable medicare waiver payments.....you would be able to efile. 

[Rider2]

I originally posted this question and never got around the issue, and filed by mail. Called customer service a few times and was constantly told that there's no way around it. I did read about putting $1 for box 1 in some forum posts to just get around it and file online, but it's not TurboTax's official suggestion and I didn't feel comfortable doing that, just in case if I'm audited.

[ysun]

I am currently stuck at paying state efile with a different issue. I believe the $1 in box 1 resolved the subject problem.  I also tried your way, but that didn't let me efile, either.

[valleynomad]

The suggestion didn't solve the problem in my case (only one W-2). It looks like a bug. 

[xmasbaby0]

@valleynomad You do not say when or even if you tried to e-file, but the e-filing deadline was at midnight on October 16.   It is no longer possible to e-file an original 2022 return.   Unless you tried to file on the deadline day and your return was rejected, the only way you can file now is by mail.   It is not a "bug."   E-filing closed for "first-time" attempts at midnight.    If your e-file was rejected on 10-16, you have five days to fix it and try to re-file.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Federal and state returns must be in separate envelopes and they are mailed to different addresses.  Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.