bub
Level 1
‎02-12-2021 10:17 AM

I have a client who received a W-2 for difficulity of care.  There is no amount reported in box 1 or 2 of the W-2 but there is an amount reported for social security and Medicare as well as state income and state income tax withholdings.  How do I handle this W-2?

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BobKamman
Level 15
‎02-12-2021 10:22 AM

https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income 

Just-Lisa-Now-
Level 15
Level 15
‎02-12-2021 10:31 AM

You dont enter the W2 if Box 1 is empty.

You may be able to enter that non taxable earned income in the EITC worksheet if it helps them qualify for EITC.

I havent had any of these personally, so Ive never worked it through the program, but I know its an option.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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