I have a similar but different issue.  I have a W-2 with nothing in Box 1 but wages in Box 3 and Box 5.  Income is taxable for social security and medicare but not income taxes as it a caregiver for a family member sharing the same domicile.  Getting this diagnostic as Box 1 is emplty.  Do I just take the W-2 off the return or do I enter an amount in box 1 and then enter as a negative later as Misc. Income?