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W2 exempt fed/state wages

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    #1

    W2 exempt fed/state wages

    I've done this a long time and never seen a w2 like this.

    Box 1&2 Blank
    Box 3,4,5,6 have SS/Med earnings and taxes withheld.
    Box 16,17 Blank

    Client said she helps her brother with life skills and a company pays for this.

    Why would this not be IRS/State taxable?!?!

    Thanks

    Chris
    Tags: None
    #2
    google the company
    Believe nothing you have not personally researched and verified.

    Comment

      #3
      Take a look at IRS Notice 2014-7

      Sounds like this may be one of those cases in which a Medicaid program is paying for care in the home to a relative. You may find that the wages are exempt from Fica and Medicare as well.

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