Question

Option missing: “Nontaxable Medicaid waiver payments that qualify as difficulty of care payments”?

Forum|Forum|1 year ago
February 6, 2025
1 reply
0 views

IHSS changed the way live-in providers file taxes this year. I’m trying to qualify for the EIC, and my only income is IHSS. I received a W2, and all boxes are either $0 or blank, other than 12a II. I followed the directions in the TurboTax article I linked, but the option in step 5 isn’t on the “Let’s check for uncommon situations” screen that comes after entering the W2. I was about to finish my taxes since I originally selected “none of these apply to me” on that screen, but a page popped up saying I’d have to mail in my taxes since I have $0 in box 1 of the W2. Strangely though, the end page where you put in direct deposit info was still available, and it showed the EIC refund. Should I just ignore the page that said to mail in the taxes and go ahead and submit? This is the help article I’m talking about: https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-w-2/qualified-medicaid-waiver-payments-w-2-show-earned/L1XZa89dh_US_en_US Thanks.

V

Vanessa A

Yes, you can attempt to continue through and see if it will allow you to e-file your return. If it does not, then take the following steps.

Since you have nothing on your form other than something in box 12, you will need to delete the W-2 where you entered it and follow these steps which will allow you to use the IHSS payments to claim the EITC

Select income
Miscellaneous Income which is under Less Common Income
Other Income Not already reported on a Form W-2 or Form 1099
Select Yes to did you receive any other wages
Continue to the box that asks for your Medicaid Waiver payments
You will be asked about using this income for the Earned Income Credit
After you do this, you will need to visit the credits and deduction section to answer the Earned Income Credit questions.
Continue through to file your return

This should allow you to e-file

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

T

taxforumsaccountAuthor

Thank you! I was able to do those steps. I figured out when I tried to file anyway it did say it would be mail in.

I have a follow up question on the California EIC. There’s a page that says this:

“We just need to figure out how much of your Medicaid waiver payments were subtracted from your federal return.

Based on what you've told us, it looks like you subtracted zero. If this isn't correct, please adjust the amount to match the total Medicaid waiver payments in Box 1 of your W-2.”

What should I enter for this, since I didn’t enter the W2?

Thank you.

KrisD15

If you had no other income, other than the "Difficulty of Care" (Medicare waiver) payments and you received the Earned Income Credit, I assume the program DID use that income for the EIC.

No one can get the EIC with no income.

For the question coming from the state of California return, you need NOT make an adjustment.

HERE is a link to a similar question and answer

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