I believe there is an error in Turbo Tax for 2019 tax year in the W2 and W2-G worksheet. Can you fix asap?

[nrmeyer]

See IRS Box 12 codes guidance page 29 in https://www.irs.gov/pub/irs-pdf/iw2w3.pdf.  The TurboTax W2 summary worksheet codes for box 12 do not match the IRS codes. 

 Turbotax W2 worksheet Box 12 Codes  d and e for 457, but IRS has 1 457 code G on W2.  Turbotax is forcing amounts from W2 12 G into worksheet 12 e  and for govt 457 extra deferral over age 50 this triggers an incorrect over-deferral error and blocks e-file.

[TaxGuyBill]

Are you entering the information on the W-2, or are you entering it directly on that worksheet?  If you enter it on the W-2, it should go to the proper 401k line on that worksheet.  The letters on that worksheet are NOT meant to refer to the codes on the W-2.  The letters on that worksheet merely are there to input different amounts.

Also, you have that worksheet labled as "Quicken".  Is that worksheet from Quicken, or is that worksheet from TurboTax?

[SC56]

I am also getting a similar error.  When I run the Smart Check, the W-2 Summary  tells me my deferrals (TP -$27,442) is more then the allowed $24,500.  I have the correct numbers and even deleted the W-2 to see if that was the program.  Don't know how to fix it.

[shahsaunil]

me too . I have an over-contribution which have accounted for but the check keeps on flagging it

[TaxGuyBill · Accepted solution]

It is working fine for me (see attached pictures).

Maybe you could try deleting the W-2s and re-enter them.

[nrmeyer]

You are right, the software is working properly -- there was a data entry error on my side.  Thank you for the assist everyone.  

[sga]

I am having the same problem. I have entered everything properly. What was your data entry error ?

[nrmeyer]

Hi, in the step-by-step there is a question about whether or not the 457 employer is local or state government.  In this situation, it was and "NO" as incorrectly checked, which forced the deferral into the wrong place on the worksheet.

[sga]

That fixed the problem when I said yes to the employer question. Thank you

[DoninGA]

The TurboTax W-2 box 12 uses the exact same codes as on the IRS W-2.

Code D —Elective deferrals to a section 401(k) cash or deferred arrangement. Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement

See Screenshot

[nrmeyer]

You didn't understand my post -- there is something wrong with the Turbo Tax worksheet and it triggers box 12 errors -- please look at the image I shared, Figure 2 is the worksheet.

[nrmeyer]

Also, DoninGA, can you unmark your response as an answer -- it does not address the worksheet problem?

[DoninGA]

The worksheet numbered lines do not have to correspond to the code in the actual W-2.  It is a worksheet and it is a Quicken worksheet not from TurboTax.

[nrmeyer]

Sorry, I mis-captioned that worksheet - it is indeed from Turbo Tax.  If you look at that worksheet, it has two different kinds of 457s, and in the IRS Codes, there is only 1 code for 457, and it is code G -- the worksheet puts it all in worksheet 12 d which is non-government 457 in the worksheet and for taxpayers over 50 with allowed catch-up in governmental 457, the worksheet 12d triggers an over-contribution state which then triggers and error, which then forces a paper file if you try to override the worksheet -- it does not help that the worksheet letters to not match the box 12 codes … this over-contribution error problem is something others are experiencing with 401s (based on other threads) and I'm guessing they are related.

[nrmeyer]

I have edited my attachment and original post to make the error issue more clear.