W-2 with blank box 1 & 2

[weo1974]

Where do I report a W-2 with no amount in box 1 & 2 but have income reported in 3 (SS), 5 (Medicare), and 16 (State)? Do I only report this on the State income tax return?

[DavidS127]

Enter your W-2 into TurboTax in the federal section, Income>>Wages and Salaries (Form W-2).  You can ", click the "magnifying glass Search" icon on the top row, enter "W-2" in the search window and press return or enter, and then click on the "Jump to W-2" link to enter your W-2.  Make the TurboTax screen boxes "look" like the W-2 you received.

TurboTax will carry the box 16 amount to your state tax return.

[weo1974]

Thanks.  I guess what I meant to say was if the W-2 has a blank box 1 and 2, I can not file elctronically, which is fine except for the inconvenience of filing by mail (especially now).  I also need clarity on whether I need to report this on my federal return since it has nothing that applies to federal income or federal taxes withheld.  

[DavidS127]

As a practical matter, entering $1 for box 1 will enable you to e-file, without any tax consequences.

On its face, that W-2 is reporting income that is subject to Social Security and Medicare tax but not federal income tax.  In addition, the income that is not subject to federal income tax is subject to state income tax.  Ideally you should understand why you got that W-2, and will need to contact you employer for that explanation. 

Also, make sure it is a W-2 form, and not a W-2C.  A W-2C reports only the boxes on the original W-2 that need to be corrected.

[SNEW1]

So if my wife has a Fed tax exemption for her job because she cares for a disabled person in our home and her W2 has a blank box 1 and 2. So we can put $1 in for her wages in box 1 in the tax program, so we can electronically file? The IRS will not flag this? They also wouldn't need some explanation of the exemption beyond her W2? I was thinking I could file electronically and then send in an explanation of the exemption with the paper copies. 

[JohnB5677]

Yes you can put $1 in for her wages in box 1 in the tax program, so you can electronically file?

The IRS may look at it, but do not do anything.  File your return and then wait.  Your situation may seem to be unique, but it happens many thousands of times with the IRS.

If the IRS were to contact you, you would then be able to give your explanation.  Sending a proactive note would only complicate maters.  The IRS needs a paper trail to follow and it starts with them sending a request for information.

An IRS notice like this is only a request for information.  It is important that you respond, but it does not put you on a blacklist.   This is a technical mater it is not criminal.

[SNEW1]

Thank you very much. I appreciate the quick and concise response. And it makes sense.

[Elaine9916]

I got a w2 with empty on box1. Any issues if put $1 on box 1 in order to efile? did IRS ask for the explanations?

Thanks!