Hi,

Proseries is currently unable to e-file the 1040 when there is a W-2 with $0 in Box 1 due to excludable Medicaid waivers payments reported in Box 12, Code II. This appears to be a new reporting format for 2024. Does anyone know how to get around this or will the return have to be paper-filed? 

Please see diagnostic message below:

Your client's return is not eligible for electronic filing due to the following reasons:

One of the W-2s doesn't have an amount in box 1 or the amount is less than $1.