I've got a client.
They have a W2 that has nothing entered in boxes 1-13, but it does have state wages in box 16, and state withholding in box 17.
Does anyone here have experience with this?
Is she caring for the daughter as part of a Medicaid waiver program? If so, then it may be done that way due to IRS Notice 2014-7 and those wages are excludable for federal purposes....in CA, the state does not tax them either, maybe your state does tax them which would explain the odd W2.
Just-Lisa-Now, yes, and you are a Champion!
I was actually thinking that, but I didn't think my state taxed that sort of income, either. There are withheld state taxes as well as state income, so I think I'm going to call the state and ask them. And if it is taxable for state purposes, I'll enter $1 for federal.