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How can I adjust income for 2020 1040 for taxpayer takes care of son in her home and receives IHSS income.
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You didn't put this in the forum for which Program you are using.
Try these:
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So sorry its for proseries basic unlimited
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THIS WAS AN ISSUE WHEN THE PROGRAM RULES WERE CHAGED AT IHHS INDICATING THAT WAGES FOR CARE OF A PATIENT IN THE WORKERS HOME, USUALLY A RELATIVE , WERE EXCLUDED FROM FEDERAL WAGES. THE COUNTY THAT IS ADDMINISTERING THESE PAYMENTS SHOULD INDICATE O, IN BOX I , WAGES, TIPS OTHER COMPENSATION, ON THE W2 PROVIDED TO THE CAREGIVER. THE PAYMENTS ARE SUBJECT TO AND SHOULD BE INLUDED IN THE APPROPRIATE BOXES FOR SOCIAL SECURITY WAGES AND MEDICARE WAGES TO WHICH THEY ARE SUBJECT TO. WHEN MY COUNTY FIRST TRIED TO REPORT THESE WAGES THEY DID PUT THEM IN BOX 1 ON THW W2s THEY ISSUED. I HAD TO GO TO THE COUNTIES HEARING OFFICER AND FILE AN APPEAL WHICH WAS HEARD BEFORE A STATE ADMINISTRATIVE LAW JUDGE TO REQUIRE AN AMENDED W2 BE ISSUED. THE COUNTY WAS REQUIRED TO CHANGE THEIR W2 REPORTING PROCEEDURES. IF YOU HAVE A W2 WITH BOX 1 FILED IN CONTACT THEIR IHHS ACCOUNTING OFFICE FOR A CORREDTED FORM. I BELIVE THIS IS A CALIFORNIA ISSUE ONLY BECAUSE IHHS FALLS UNDER THE MEDICAL PROGRAM ADMINISTRATION PROCESS.
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My client received a w2, I would like to exclude it from her wages since she took care of her son at home. I have done it before prior to 2020 but 1040 for 2020 is quite different. Pro series software. I have been researching and nothing pops up.
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"I have been researching and nothing pops up."
Did you not read the links I provided?
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Yes I most certainly did but two of them are for a different software and one of them states a different solution for someone who did not have a w2.
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I'm pretty sure I read "don't enter a W2 with 0 in box 1" and "line 8 schedule 1, back it out with negative as other income adjustment." Does that not work? Maybe it's time to start a topic under that specific program you are using, then.
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I tried everything for some reason as I hit the negative it does not deduct the income.
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Finally figured it out!!! whooo!! So for anyone reading this. For the Pro series, you have to go to the EIC worksheet and minus out the IHSS reported on the W2 form in line 6 Medical waiver nontaxable income. This is an addition to adjusting the income on line 8 in order to recalculate EIC correctly.
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i have the same issue did you find out any information that might help me
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There is a ProSeries answer right here in this topic, marked as the Solution.
If that isn't the program you are using, you should post in the forum for the program you are using. This is a General topic section for Tax Talk, for users of ProSeries, Lacerte and ProConnect. Each of the programs has its own subforum specifically for user questions that are specific to the program you are using.
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