Hello, I have been trying to file my 2024 tax return using free edition of TurboTax, since I’ve been having problems getting it to let me E-file because of the $0.00 amount in box 1 of my W-2, I am now down to the April 15th deadline unfortunately🫤 so I would very much appreciate anybody who can help me with this problem before 12(Midnight) tonight on the west coast…. The problem I am having is TurboTax won’t let me E-file because my W-2 has a $0.00 amount in box 1 because I am a live-in IHSS provider which makes my income non-taxable because I am paid in Medicaid waiver payments. I do realize this means I don’t have to file a tax return but I am filing to get the federal and state (CA) Earned income tax credit, because I can use my Medicaid waiver income to calculate my EIC. I have done hours/days of research online and in the intuit website FAQ’s section which has quite a bit of people asking this same question and tax experts answering. The only problem is there is so many different conflicting answers and methods of going about filling out my return, I am honestly confused and not sure which method to go with? I was really hoping somebody could give me a definitive, confirmed to work method. I have read the one method saying to just put $1 in BOX 1 so that it will let me E-file? I’m uncertain of doing that though because that’s not what my W-2 says and I’m afraid I.R.S will reject it? Another method says to just put the amount in BOX 3 of my W-2 which is the amount I received in Medicaid waiver payments, in BOX 1 and then in the (UNCOMMON SITUATIONS) section, click the box that says “MEDICAID WAIVER PAYMENTS” Some people had a problem with that method saying it counted their income twice? Then someone said to enter that amount in as a negative number somewhere else in the form and then it would subtract it on line 8 of my 1040 form or something like that?? And the last method I read was to leave the $0.00 in BOX 1 and then go down to the section where it says (Other types of income) and select “MISCELLANEOUS INCOME” then enter my Medicaid waiver payments amount there and then type in the box to explain what it is (“Medicaid waiver payments”) Again, I sincerely appreciate your time and effort on this subject. Hopefully together we can figure this out before the deadline at midnight tonight. I really could use the extra money right now from the EIC to pay some bills😊

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Question

NEED HELP FILLING OUT MY W-2 INFO IN “TT” FOR IHSS MEDICAID WAIVER PMNTS. SO I CAN E-FILE WITH $0.00 IN BOX 1 AND GET EIC

Forum|Forum|11 months ago
April 16, 2025
1 reply
0 views

Hello, I have been trying to file my 2024 tax return using free edition of TurboTax, since I’ve been having problems getting it to let me E-file because of the $0.00 amount in box 1 of my W-2, I am now down to the April 15th deadline unfortunately🫤 so I would very much appreciate anybody who can help me with this problem before 12(Midnight) tonight on the west coast….

The problem I am having is TurboTax won’t let me E-file because my W-2 has a $0.00 amount in box 1 because I am a live-in IHSS provider which makes my income non-taxable because I am paid in Medicaid waiver payments. I do realize this means I don’t have to file a tax return but I am filing to get the federal and state (CA) Earned income tax credit, because I can use my Medicaid waiver income to calculate my EIC. I have done hours/days of research online and in the intuit website FAQ’s section which has quite a bit of people asking this same question and tax experts answering. The only problem is there is so many different conflicting answers and methods of going about filling out my return, I am honestly confused and not sure which method to go with? I was really hoping somebody could give me a definitive, confirmed to work method. I have read the one method saying to just put $1 in BOX 1 so that it will let me E-file? I’m uncertain of doing that though because that’s not what my W-2 says and I’m afraid I.R.S will reject it? Another method says to just put the amount in BOX 3 of my W-2 which is the amount I received in Medicaid waiver payments, in BOX 1 and then in the (UNCOMMON SITUATIONS) section, click the box that says “MEDICAID WAIVER PAYMENTS” Some people had a problem with that method saying it counted their income twice? Then someone said to enter that amount in as a negative number somewhere else in the form and then it would subtract it on line 8 of my 1040 form or something like that?? And the last method I read was to leave the $0.00 in BOX 1 and then go down to the section where it says (Other types of income) and select “MISCELLANEOUS INCOME” then enter my Medicaid waiver payments amount there and then type in the box to explain what it is (“Medicaid waiver payments”) Again, I sincerely appreciate your time and effort on this subject. Hopefully together we can figure this out before the deadline at midnight tonight. I really could use the extra money right now from the EIC to pay some bills😊

SharonD007

When your W-2 has zeroes in all of the boxes except Box 12a, with code ll, that amount is your Medicaid Waiver Payments that are excluded from your income. To determine if you want to include this income on your tax return for your Earned Income Tax Credit, when you get to that section, you can elect to add the income or exclude it. Try both ways to determine which way gives you the greater EIC.

Follow the steps below to enter your W-2

Open TurboTax
Select Federal Taxes
Select Wages & Income
Select Work on W-2
Enter your W-2, at the Let's check for uncommon situations; check the box next to Nontaxable Medicaid waiver payments
Continue following the prompts.

Review the TurboTax Help article How do I enter my tax-exempt Medicaid waiver payments from IHSS in TurboTax? for navigation instructions.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

E-Rich333Author

Thank you so much for your reply. I just have a couple more questions.

First off I just wanted to inform you that my W-2 does not have all $0’s except for box 12. In box 3 my total amount of Medicaid waiver payments are stated. Also boxes 3 thru 6 have numbers in them as I have social security and Medicare taxes withheld. I also pay FICA. So the problem I had when trying to do the steps you mentioned is that when I fill in box 12 with the || the box that says “MEDICAID WAIVER PAYMENTS” in the (UNCOMMON SITUATIONS) section IS NOT there. It only appears when I leave box 12 blank. Moreover, If I put $0.00 in box 1, when I get to the end and try to file my return it says that the IRS has a law that will not let me E-file with a $0.00 in box 1 and I have to file by mail, which I can no longer do now because today is the deadline. So should I leave box 12 blank and enter the amount in box 3 into box 1 so that it will let me E-file? Or will the putting $1 amount in box 1 be ok with the IRS? OR should I enter my W-2 as is with the $0 in box 1, leave box 12 blank and enter my Medicaid waiver income payments in the section that says “OTHER TYPES OF INCOME” then select “MISCELLANEOUS” and type in what type of income it is? (E.G. Medicaid waiver payments)
Thank you again for your time. I truly appreciate it!😊

skt

Employee

I have the same problem. We have two W2s with $0 amount in Box 1 but Box 3-6 have numbers. Also, Box 12 code is II (Medicaid waiver payments ...) with Box 12 amount same as Box 3.

It's very confusing.
Since I have other W2s, I am tempted to delete W2s with $0 in Box 1 and file my return.

Would appreciate any comment/feedback.