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January 29, 2025
Question

Non taxable income being taxed

  • January 29, 2025
  • 1 reply
  • 0 views

I am submitting a W2 for non taxable income with IHSS because I live with my grandmother it is non taxable so box 1 shows zero and I just show the non taxable amount in box 12 . However after submitting this on intuit turbo tax it lowers my refund by over 1,200 dollars . I have reviewed taken it and re entered to make sure I did not make a mistake but it always drops my refund by 1200 dollars ? Again yes it is non taxable soc 2298 income the W2 was issued correctly by the state but on turbo tax it is lowering my federal amount ? What can I do to fix this ?

1 reply

January 29, 2025

The additional is probably the social security tax on the IHSS income. It is not subject to income tax but may be taxable for social security tax. Can you clarify what the code number is in box 12?

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January 29, 2025

Box 12 list code II . 

January 29, 2025

Per this excerpt from an article from the IRS, the payments could be subject to social security tax if you work for an agency:

 

 

If social security/Medicare tax was not reported in box 4 or 6 on your W-2 form, then the taxes may be paid when you file your tax return. To verify this, you should look on line 23 of your Form 1040 to see if there are additional taxes listed there, also in Part II of Schedule 2. To view your Form 1040 and Schedule 2 follow these instructions:

 

  1. Choose Tax Tools from your left menu bar in TurboTax Online
  2. Choose Tools
  3. Choose View Tax Summary
  4. See the Preview my 1040 option in the left menu bar and click on it
  5. Choose the Back option in the left menu bar when you are done 

{Edited 1/29/25 at 1:22 PM PST]

@Roseannaa1

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