W-2

[grandmabee]

I have a W-2 with box 1 is blank

Both SS and Medicare wages show 18,000 and with correct taxes in box 4 and 6

Client of course knows nothing.  I called the employer asking if maybe a difficulty of care payments because she is a  caregiver.  They said yes she said it was difficulty of care but accounting dept. went on to say their employees can go in and change it on their own and claim exempt anytime.

All the difficulty of care W-2's I have seen had no SS & Medicare wages listed, this one does.

Has anyone seen this kind of W-2?

 

thanks

[Lion EA]

Sounds like your client entered a new W-4 online and claimed she was exempt from federal withholding.

Help her go online and update her info for 2022.

[grandmabee]

Being exempt from federal withholding should not make box 1 blank .  The company got back to me and sent me the "difficulty of care" form my client filled out saying she qualified.  Now I have to double check with her to make sure it was in her home.  So box one being blank was correct and I guess some patients are SS/ exempt and some are not.

[Medlin Software, Dennis]

There are instances where the paying agency will issue a W2 or 1099, and the caregiver's situation makes the funds not wages and not taxable earnings.  Seems odd, but it true, as the paying agency is not always in a position to know the tax status of the recipient.  For instance, IHSS payments to a person residing in the home of the person needing care are not wages, but they do count towards EIC.

[grandmabee]

What is IHSS?

 

[Medlin Software, Dennis]

What several states call their program to pay home care givers instead of having to pay for institutional type services.  Could be similar to what you refer to as difficulty of care payments.

[beckster2010]

35 minutes ago, grandmabee said:

What is IHSS?

 

In Home Support Services