Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Feb 3, 2023 8:08:59 PM

Non-qualified pension income triggering reject code FW2-001-02

What should I do?

0 15 1000
1 Best answer
Level 2
Feb 4, 2023 5:50:51 PM

I found the answer! While not on the W-2, TT places the value for non-qualified pension income in both lines 11 and 10 of the internal W-2. Removing the value from line 10 ( but leaving it in line 11) allowed the return to be accepted.

15 Replies
Level 15
Feb 4, 2023 1:30:23 AM

FW2-001-02
Reject Code FW2-001-02 generally occurs when a W-2 has been entered in the return and marked as a statutory employee W-2, but no Schedule C has been associated with the W-2. Wages from a W-2 marked as a statutory employee W-2 are not included in the income reported on Form 1040, line 1. Earnings as a statutory employee must be reported as income in Schedule C.

 

is the statutory employee box check on the actual W-2 or was that typo you made when entering it?

see this link for who can be such an employee. if you don't fall into one of these categories request a corrected w-2 and delete the checkmark. to avoid an IRS notice the employer must correct the w-2 filing.

FW2-001-02 Reject Code FW2-001-02 generally occurs when a W-2 has been entered in the return and marked as a statutory employee W-2, but no Schedule C has been associated with the W-2. Wages from a W-2 marked as a statutory employee W-2 are not included in the income reported on Form 1040, line 1. Earnings as a statutory employee must be reported as income in Schedule C.  

 

Level 2
Feb 4, 2023 4:37:48 AM

The statutory employee box is not checked and is entered correctly. There is no Sch C. The W-2 is from a non-qualified pension plan. Other ideas?

Level 2
Feb 4, 2023 5:50:51 PM

I found the answer! While not on the W-2, TT places the value for non-qualified pension income in both lines 11 and 10 of the internal W-2. Removing the value from line 10 ( but leaving it in line 11) allowed the return to be accepted.

New Member
Feb 8, 2023 6:51:14 AM

I tried eliminating the entry in box 10, but keeping in box 11 as you suggested.  But TurboTax still will not let me e-file since it is still showing Pending status.  Says there is nothing to file because I already filed.  How do I get out of this "do loop"?

Returning Member
Feb 8, 2023 7:06:21 AM

This is my exact problem as well1 Got e-mails from TT within 10 minutes of filing that both Fed and State had been rejected last Friday afternoon, but hard copy of TT Premier still shows pending and can not move forward or back. Schedule 1 Line 8t has been added this year. $ were added here and taken away from my 1040 Line 1a, even though I had ented W-2 correctly. Stat Employee box not checked on W- hard copy or in TT.

Returning Member
Feb 8, 2023 7:09:16 AM

Please read later in thread.

Returning Member
Feb 8, 2023 7:26:17 AM

I PM'd Mike9241. Hopefully he has an idea. I am guessing this is an internal TT programming error. Do you know how to contact TT directly about issue?

New Member
Feb 8, 2023 7:46:09 AM

No, I tried to talk to a person at TT yesterday.  After waiting almost an hour I was only able to speak about this issue to their computer help desk that was of no help at all.  It does a great job screening us real customers from their humans.  As a 15 year customer, I am really disgusted that TT won't take responsibility and fix this coding issue.  You'll notice they seem happy to give us a platform to complain to each other and ask for advice without providing help for a known problem.

 

 

Returning Member
Feb 8, 2023 8:23:45 AM

Talking to live person, but almost clueless. They wanting me to spend another $139 for Live assist. I keep repeating it is an internal error. Been with them 15 years as well.

 

Returning Member
Feb 8, 2023 8:25:32 AM

Or she said to just mail in and let IRS figure it out! lol

Returning Member
Feb 8, 2023 9:10:37 AM

Think I had success getting this pushed up the ladder. Supposedly they now realize it internal two part error. #1 Get E-file status to show Rejected instead of Pending, then #2, fix Non-qualified issue where W-2 $ taken away from Line 1a of 1040 and placed Line 8t of  Schedule 1. God Help Us!

Level 1
Feb 9, 2023 6:00:53 PM

This worked for me also.  Thanks!  Return accepted in minutes by IRS.

New Member
Feb 10, 2023 6:25:34 AM

How did you get past the "Pending status to resubmit your return?

Level 1
Feb 10, 2023 8:19:07 AM

Just blind luck I guess.  I never received the message regarding pending status.  I did wonder however if I should have filed an amended return rather than re-submitting.

New Member
Feb 13, 2023 8:37:15 AM

My rejected return is still showing Pending status in TT after more than two weeks.  Is anyone getting help from TT.  After 15 years of use, I will not subject myself to TT again next year if they can't or won't fix this coding