I have 2 w2s this year both Medicaid waiver payments. One w2 has an amount in box 1 and one dont
I have two w2s this year both for Medicaid waiver payments. One w2 has an amount in box 1 but the other w2 has no amount. I'm eligible for earned income credit . How do I input both my w2s without getting errors?
Answers
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Did you live with both of your employers? Your income is only excludable if you lived with the person for whom you were caring.
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Yes it's my son and the reason why there are two w2s is because our company changed within the year so that left me with two w2s and usually when I filed there was always an amount in box 1 so it was easy but now I'mconfused because I tried 3 diff tax softwares and none will take 0 for box 1
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Hello,
You would want to enter in your W-2 with income in box 1 as it is. As for the one that has nothing in box 1, the IRS will not accept an e-filed return with zero wages in Box 1 of a W-2. If your Box 1 wages are blank or zero and there is nothing on the W-2 that affects your tax return, then don't enter the W-2.
If Box 1 wages are blank but you have federal tax withheld or some other item (such as state/local items, reported on boxes 15-20) on the W-2 that affects your tax return and you need to file this W-2, enter $1 as the amount of Box 1 wages.
Once you have entered your W-2s, then please go to Income -> Uncommon Income -> Other Income.
Here, you will see a bunch of miscellaneous items. Scroll down until you see a line that says, “Medicaid Waiver Payments to Care Provider”. Once you say Yes, you should see two spaces. One is to enter the non-taxable payments that were reported on your W-2. The other is for non-taxable Medicaid payments that were NOT included on Box 1 that you would like to include in earned income.
Some people may get a higher earned income credit by entering those non-taxable earnings and including them will not increase your taxes owed on your income. But you are not required to include them here.
