Difficulity of Care

bub · ‎02-12-2021

I have a client who received a W-2 for difficulity of care. There is no amount reported in box 1 or 2 of the W-2 but there is an amount reported for social security and Medicare as well as state income and state income tax withholdings. How do I handle this W-2?

BobKamman · ‎02-12-2021

https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income

Just-Lisa-Now- · ‎02-12-2021

You dont enter the W2 if Box 1 is empty.

You may be able to enter that non taxable earned income in the EITC worksheet if it helps them qualify for EITC.

I havent had any of these personally, so Ive never worked it through the program, but I know its an option.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪