W-2 No Wages or tax withheld on Federal, but WV State wages and tax shown. Ineligible for efile

[SKC2021]

Taxpayer received a W-2 with no wages and tax withholding on Federal but WV state wages and tax withholding. This is from a provider for difficulty of care payments under “IRS notice 2014-7”. How do you show this on Federal and State so it is eligible for e-file?

[Just-Lisa-Now-]

Interesting, CA conforms to federal and excludes these wages....Im curious to see the answer for WV.

[SKC2021]

If state of WV taxes these difficulty of care payments, could I delete the W-2 zero wages for Federal and enter West Virginia state wages under other income deducted from Federal adjusted gross income and enter the tax withheld under other state tax withholding, So that I can efile the return?

[Just-Lisa-Now-]

Im not sure if WV allows that (try it and see?) I know CA insists that anything that has withholding be linked to a tax form.

[SKC2021]

I am going to attach a copy of the W-2 on the State return by PDF. Hope it works.

[Abhilash Jossy]

@Just-Lisa-Now- @SKC2021 I have a similar situation - My federal return includes W-2 with 100% foreign earned income exclusion, and there is a federal withholding, which I am receiving as Direct Deposit. However, in 2022 Proseries, there is a e-file reject message shows I should mail the return. 

Please note that I have e-filed the same return (same scenario) during 2021.

Can you confirm, please ?

[Just-Lisa-Now-]

In my experience, you cant EF if you have federal withholding but total income on the return is less than the withholding.

I have clients with excludable difficulty of care income that have withholding on it.  If I exclude all the income, we cant EF.  But if I only exclude enough income that leaves income of $1 more income that withholding, I can EF just fine and it doesnt make any difference to their tax situation.

[Abhilash Jossy]

I have efiled the same client's return last year. That's what confusing me 😞

[Just-Lisa-Now-]

Somehow you got lucky for 2021 then, did they have any other income on the return n 2021?

[Abhilash Jossy]

No other types of income. Thank you so much for your time.

Have a great day!