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

[BEKanak]

What should I do?

[Mike9241]

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 mar...  

. 

[BEKanak]

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?

[BEKanak · Accepted solution]

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.

[jburton722]

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"?

[jcb3175]

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.

[jcb3175]

Please read later in thread.

[jcb3175]

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?

[jburton722]

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.

[jcb3175]

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.

[jcb3175]

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

[jcb3175]

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!

[redkdd]

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

[Jrburton722]

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

[redkdd]

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.