IHSS w2 can’t e-file california tax

Vin

Hi, I have two W-2s—one from a regular job and one from IHSS. The IHSS W-2 has $0 in Box 1 and 2,but there are amounts in Boxes 3–6 and Box 12 (Code II).

Can I leave out the IHSS W-2 so I can e-file? The software doesn’t allow it with $0 in Box 1.

Will leaving it out affect my Social Security credits?

Also, should I enter the Box 12 amount under Medicaid waiver payments for Earned Income Credit, or just leave it out?

Thank you.

Austyn

Hello Vin,

The IRS won't accept an e-filed return with zero wages in Box 1 of a W-2. Here's how to handle your IHSS W-2:

Since your IHSS W-2 has amounts in Boxes 3-6 (which affect your Social Security and Medicare credits), you need to include it on your return. To work around the e-filing issue, enter $1 in Box 1 when you input the W-2 in the software. Enter all the other boxes exactly as they appear on your actual W-2. This allows the system to accept the W-2 for e-filing while still properly reporting your Social Security wages.

Leaving out the IHSS W-2 entirely would mean those Social Security wages in Box 3 wouldn't be reported, which could affect your Social Security credits—so you definitely want to include it using the $1 workaround.

Regarding the Medicaid waiver payments and the Earned Income Credit, you have the option to include those nontaxable payments as earned income if it benefits you. To do this, navigate to Income > Other Income and answer Yes to "Medicaid Waiver Payments to Care Provider." Enter the Box 12 Code II amount there. The software will include it in the EIC calculation without taxing it. You can compare your refund with and without this entry to see which works better for you.