How to enter in ATX - IHSS excluded on return but added back for EITC

[BulldogTom]

I can override the forms to get this information in the return, but I am wondering if any of you have had success in putting in the W2, excluding the amount using box 14, and getting the amount back onto the EIC Earned Income tab without doing an override?

Thanks in advance.

Tom
Modesto, CA

[BulldogTom]

Anyone?   Bumping up

Tom
Modesto, CA

[Pacun]

Box 14 on W2 is nothing. I guess I don't understand the question.

 

[BulldogTom]

11 hours ago, Pacun said:

Box 14 on W2 is nothing. I guess I don't understand the question.

 

There is a dropdown on the W2 entry screen for Medicaid Waiver Payments (way down at the bottom).   When you enter that code in box 14 on the W2 Input Screen, ATX will make an adjustment to income, making the amount non-taxable.   The issue is there is a court case (Feigh v Commissioner) where the taxpayer was allowed to exclude the IHSS payments, but also claim them as earned income for the purposes of the EITC (double benefit).   But ATX, while making the proper adjustment for taxable income when box 14 is filled out, is not including that income on the EIC Earned Income worksheet for calculation of the EITC.   The only way I can find to get the income on that form in ATX is to either override the income calculation on the form or leave the W2 alone and allow the income to be taxed.   

I am wondering if anyone else has a way to make ATX follow the tax court case without an override.   Last year when we contacted support they said that they would have it fixed in the 2020 software.   

Tom
Modesto, CA

[Medlin Software, Dennis]

Can't help with ATX.

IHSS is not taxable wages if the provider and recipient reside together, such as parent caring for child/adult child/other adult (and possibly a live in, although that is not something I have researched).  For TY 2020, CA seems to have resolved sending W2 forms to those who it does not apply to.  The reason I mention it is it may be the receipt of the W2 implies the amount is taxable wages.  You may want to get some sort of statement or affirmation from your client stating they only provide care for a qualified resident of their home.

Also of note, in some states, not all states allow the provider to be a relative (CA does).

[BulldogTom]

Wife caring for husband.   Definitely qualifies.

Tom
Modesto, CA