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if filing jointly and wife stays home and takes care of there disabled daughter and State of California sends her a W2 with only box 1 and box 16 filled do I have to report it?
if daughter lives in same household do I have to include the W2?
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See if it qualifies as difficulty of care payment. If yes, you report it as wages and subtract it on some line.
If no, it's taxable just like any other wages.
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