I have a client whose W-2 shows $12,000 in Box 1, with federal tax withheld as zero. Boxes 3 and 5 both have amounts, and the California section also shows an amount, but California tax is zero. She lives with her mom and said they live together. In this situation, I was wondering why didn’t IHSS report the $12,000 in Box 12, Code II? Can I exclude the $12,000 from income and consider it for the EITC?