W2 with box 1 empty Can't e-file

Forum|Forum|1 year ago
January 31, 2025
1 reply
25 views

Hi,

I received mine W2 form my employer. I am a healthcare provider for my son, we live in New Jersey. I have a W2 where box 1 ($0) and box 12a (II $14,445) box 16 ($14,445) and box 17 ($161)

If I remove the W2 from mine return, I will lose the Child Tax Credit and the Earned Income Credit. If I keep the W2 on mine return, I cannot e-file.

Can I remove the W2 and put the $14,445 under other income to receive mine Child Tax Credit and the Earned Income Credit?

TurboTax Free Edition Online

MaryK4

Level 15

In TurboTax, after you enter the W2 information, you can indicate the payment (see screen below). TurboTax Tax will make the adjustments so that you can use the income for the credits. Also note- New Jersey is not taxing this income (see NJ Division of Taxation - Exempt (Nontaxable) Income) so you can adjust the Box 16 amount to zero so you can get the withholding refunded.

If you get the efile error for the zero wages W2, please add to this post, TurboTax should make the adjustments needed so this does not happen so we can check it for you.

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hkluis

Level 2

How can we make a request for a change to tolerate the zero Box 1 in W2, especially if the Medicaid waiver box is checked or (new in 2025) W2 Box 12a shows reason "II" with the waiver amount indicated?

This has been a perennial problem with TurboTax over the years. I got around it by entering a trivial amount like $1 in Box 1.

hkluis

Level 2

Now it looks like if the W2 Box 12a indicates code "II - Medicaid waiver..." (new in 2025) and the non-taxable amount, TurboTax will no longer present the "Medicaid waiver" checkbox in the "less common situation". This behavior is correct. However, TurboTax is still flagging the zero value of W2 Box 1.