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February 29, 2024
Question

IHSS W2 income on box 1

  • February 29, 2024
  • 1 reply
  • 0 views

I received W2 from IHSS which shows amount on box 1($5,874.00).This is less than $9297on box 3.

This probably happened as the IHSS received the live in certification late(SOC2298).

 

How do I exclude the income?

This is what I did

1)Kept all the income the ay it is on W2

2)Less common scenerio- seleted

Nontaxable Medicaid waiver payments that qualify as difficulty of care payments
 
3)Let's check your Medicaid waiver payments
How much of the $5,874 in box 1 is difficulty of care payments?
All of it
 
4)Did you get any difficulty of care payments from NALIN BHOWMIK that aren't in box 1? (This includes payments in other boxes or that aren't on your W-2.)
Yes
Put $3423 in the box
 
 
Please advise
 

    1 reply

    February 29, 2024

    You did it the correct way.  Now none of your IHSS wages should be included as taxable income.  You can verify this by looking at line 1a of your 1040.

     

    On the menu bar on the left that shows. 

    1. Select Tax Tools 
    2. On the drop-down select Tools 
    3. On the pop-up menu 
    4. Select View Tax Summary 
    5. On the left sidebar, select Preview my 1040 

    Or if you are using the desktop version, you will just switch to forms mode. 

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    techiemomAuthor
    March 1, 2024

    Thanks for replying .However,when I put just the amount from box 3 into box1 and selecting

    1)Kept all the income the ay it is on W2

    2)Less common scenerio- seleted

    Nontaxable Medicaid waiver payments that qualify as difficulty of care payments
     
    3)Let's check your Medicaid waiver payments
    How much of the $9297 in box 1 is difficulty of care payments?
    Select ALL
    The amounts of state tax due becomes different.I am confused why it is so.Shouldn't it be the same as I am doing the same thing in both the cases?
    AmyC
    April 15, 2025

    thank you so much, Amy! It turned out that somehow my wife's SOC 2298 did not get into the system (although we have certified that our daughter lives with us on every one of her timesheets). So we should be okay if IRS does inquire right?


    Yes, you have a paper trail and allowed exemptions on the income.

     

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