IHSS income as a live-in provider

[ThomasM125]

@ripa818 If you are sure the income is not taxable, you should enter your W-2 as reported to you. To exclude the amount reported in box 1 on your W-2 from tax, follow these instructions:

 Go to the Wages and Income section of TurboTax

 - Choose  Less Common Income

 - Choose Miscellaneous Income, 1099-A, 1099-C

 - Choose Other reportable Income

 - Enter a description for your entry (IHSS excluded Inc) and the amount as a negative number

[ripa818]

Perfect finally I found the right answer. Thank you very much. I did put my W-2 as reported under my Wages & income because I also paid taxes so to capture all that information and I  put the same number as negative income per your instructions. 

[johnsantaclara1]

Hi ColeenD3, I am also a IHSS live-in provider and have a W2 with $0 in all boxes except Box 14 which has 13.68. I tried manually entering this W2 with $0 values in Turbo Tax Premier, and am running into the same problem saying that TurboTax says it can't e-file due to income being < $1.  Sorry that I was not clear about your advice. Which box should I fill $1? Or should I mail my return? Just making sure that I am doing the right thing. Thank you.

[PattiF]

You do not need to enter the W-2 in the tax return with a value of 40 in Box 1. The small amount in Box 14 does not need to be reported. 

From DianeW777

"HSS income is excluded from federal and state income taxation, but subject to FICA taxes.

Please see this document for more information:

• Tax Update for IHSS Providers

As indicated the W2 in this situation is not required to be reported. However, if you fit the criteria below for excess FICA, then you can enter $1 in the wage box so that the W2 will be accepted for e-file."

[johnsantaclara1]

Thanks a lot PattiF. One quick question: All the boxes in my W2 are $0, except Box 14 (13.68). Please advise how to figure out if I have excess FICA as per your suggestion. I am a live-in provider only for one family member who lives with me. Other than that I only had around $15 in dividends from my gifted stocks, and no other income in 2021. Thanks again.

[LeonardS]

 Employers use Box 14 on Form W-2 to provide other information to employees. Generally, the amount in Box 14 is for informational purposes only. However, some employers use Box 14 to report amounts that should be entered on your tax returns.  If you have any questions about the information in Box 14 contact your employer for an explanation.

[johnsantaclara1]

PattiF ,LeonardS,

Thanks a lot again! Please confirm which of these 2 options is a safer option with $0 IHSS (live-in provider) income in W2 . (The only other income I had was $15 in dividends in 2021)

Options:

1) Don't even enter the IHSS W2 in Turbo Tax

2) Enter the IHSS W2 in Turbo Tax with $1 in Box1 in order to be able to e-file

Thanks again!

[RobertB4444]

@johnsantaclara1  You do not need to file a tax return at all unless you are trying to get a child tax credit or a stimulus payment.  With $15 in income you have no federal filing requirement.

If you are trying to get the child tax credit or a stimulus payment then you should file the return excluding the W2.

[jimpinney68]

If box 1 of your w2 is 0 then your wages are not taxable; however if you qualify for earned income credit($5000 back in taxes) you have the choice to count IHSS wages as income. 

[hoaleto]

I'm also a live-in provider and W2 is $0 in box 1.  I do pay FICA & SICA.  I do have interest income and social security income but Turbotax still does not let me e-file.  What do I need to do to be able to e-file.  W2 $0; 1099-INT $163; SSA-1099 $11,300.

[Vanessa A]

TurboTax is not letting you file because you do not have any taxable income.  If you are single, which is the lowest standard deduction amount, you would deduct $12,950 from your income.  Since the number would be negative, there is no taxable income and nothing to file. You would have a $0 return which cannot be e-filed. 

The exception to this would be if you had taxes withheld form your social security and were filing to claim a refund. However, this is not common.  

[hoaleto]

Much appreciate your quick response.  I guess I will just print out the return and mail it in then.  

[jimpinney68]

I tried online tax but it wouldnt let me continue because my W2 box one was zero.  My previous post had a referal link to H&R block.  They helped me get a few thousand back.

[DawnC]

If your Box 1 is empty, you can enter the same amount that is in Box 5 into Box 1.   Then you make an adjustment to make to negate the income you entered in Box 1, so that is not taxable on your tax return, but still qualifying for EIC and the CTC.    @jimpinney68   @hoaleto

Qualified Waiver Payments

Discussion and Tax Expert Barbara's explanation of how to handle different situations.  

[cluna123]

I'm also a live-in provider with a $ in box 1 and 16. However, my IHSS paystubs show $0 for all deductions including federal, state, FICA etc. I regularly file jointly with my husband whom works FT and has a W-2. Do I still enter a negative number?