nectarine
Level 2

I received a W-2 from a client where box 1 (wages is 0) but boxes 3-6 have amounts. This is the first time I received a W-2 like this. The tax payer is a caregiver.  Is their an error here or it is possible?

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Just-Lisa-Now-
Level 15
Level 15

Ive seen them plenty of times....you don't enter a W2 with zero in box 1.  Its informational only and doesn't get included in the tax return.

Many caregivers are giving care as part of a Medicaid waiver program and their earnings are excluded from taxable income, but still subject to SS and Medicare, this sounds like your clients situation.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Just-Lisa-Now-
Level 15
Level 15
You can research IRS Notice 2014-7 for more information regarding this type of income.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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rbynaker
Level 13
If for some reason SS/MC wages matter (i.e. another job takes you over the SS limit, or you're subject to additional medicare tax) then I would enter $1 as wages just to bypass having to paper file.  CAGMC.

Rick
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Just-Lisa-Now-
Level 15
Level 15
That's true....Ive never had anyone with caregiver wages that had lots of other earned income as well, so I forget that could be an issue.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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rbynaker
Level 13
Me neither.  The two don't seem to overlap.  But it's mathematically possible. 🙂
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