Why W-2 is O while boxes 3-6 have amounts?

[nectarine]

I received a W-2 from a client where box 1 (wages is 0) but boxes 3-6 have amounts. This is the first time I received a W-2 like this. The tax payer is a caregiver.  Is their an error here or it is possible?

[Just-Lisa-Now- · Accepted solution]

Ive seen them plenty of times....you don't enter a W2 with zero in box 1.  Its informational only and doesn't get included in the tax return.

Many caregivers are giving care as part of a Medicaid waiver program and their earnings are excluded from taxable income, but still subject to SS and Medicare, this sounds like your clients situation.

[Just-Lisa-Now-]

You can research IRS Notice 2014-7 for more information regarding this type of income.

[rbynaker]

If for some reason SS/MC wages matter (i.e. another job takes you over the SS limit, or you're subject to additional medicare tax) then I would enter $1 as wages just to bypass having to paper file.  CAGMC.

Rick

[Just-Lisa-Now-]

That's true....Ive never had anyone with caregiver wages that had lots of other earned income as well, so I forget that could be an issue.

[rbynaker]

Me neither.  The two don't seem to overlap.  But it's mathematically possible. 🙂