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.
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Hello, I have two W2 from separate companies (changed companies during year) for 2024 Difficulty of Payment both 0 in Box 1 but both deducted for Social Security and Medicare. I’m in process of entering Other Income under Medicare Waiver to get Earned Income Credit. Can I just include one of those W2? If I include both my refund is lower for both federal and state. It says I can try including Medicare Waiver or not-in tax help section so no clear if I can just add one to get bigger refund. Thank you!😊
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ImI'm Not positive about this but... I think irs says we can include all or none of medicaid waiver payments but meaning we can't just include part..so being both w2s are Medicaid waiver payments seems like if u only include one w2 instead of both w2s then seems like that would be trying to include part of Medicaid waiver payments which irs says we can not do.…I could be wrong but that's my guess . I never could get mine filed on 4 diff tax sites so I paid $135 to get a pro to file mine ... I would get all the way to the end where I'd hit file and it would pop up saying I couldn't efile .
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I appreciate your answer. I hope there is a freetaxusa professional that can verify this as the difference is about $600 on the return. Let me ask you this does it show on your return line 8 as a negative number and does it back out your income from difficulty of care payments on line 11 adjusted gross income?
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Yes, that is exactly how it should show on your return after entering it as nontaxable Medicaid waiver payments.
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