Question
Difficulty of Care on W-2
I have a client who has received a Difficulty of care payment on a W-2 each year for the care of their son with box 1 and box 2 zero and there is always an amount in box 16 and 17. I have always had them file paper because Proseries does not accept zeros when entering the W-2 for e-file purposes. And since Oregon accepts Federals exemption, they have always received the amount in box 17 back.
My question is since we now have the Medicaid waiver payments that can be entered on Line 1d of the Form 1040 and the ability to subtract it out on Schedule 1, Line 8s, how do you get around the W-2 with zeros in box 1 and 2 when entering it in the W-2 worksheet so you can file the return electronically? Any suggestions is appreciated.
