W-2 Box 12AA

Forum|Forum|2 years ago
April 4, 2024
1 reply
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Why does Turbo Tax show W2 Box 12 AA in Form 8880 Line 1 for my 2022 return, but not my 2023 return?

My husband's W-2 for both 2022 and 2023 had amounts entered in Box 12AA. And I entered the W2s correctly.

I know it doesn't affect much of anything, but it is a curiosity for me.

MarilynG

Level 15

Your W-2 Box 12 with Code AA designates Roth 401K contributions.

Form 8880 is to calculated to determine whether you qualify for a Saver's Credit for your retirement plan contribution.

Were there any calculations on your 2022 Form 8880?

Even if you qualified for the credit in 2022, it's possible you didn't in 2023; there are income limitations.

Here's more info on the Saver's Credit.

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wenwrightAuthor

Level 2

I am getting the 200.00 Savers Credit for both years.

In 2022, Box 12AA was 272.28 and that shows on Form 8880 Line 1 for 2022.

For this year, Box 12 AA had 1327.25. It does not show on Form 8880 Line 1.

But, guess what? I just discovered that TurboTax for 2022, Form 8880 Line 2 has added together Box D and Box 12AA together, 2,574.98 + 272.28 = 2,847.26. Line 3 shows 3,119. (272.28 too much) The Box 12AA amount of 272.28, is on Line 1 AND included in Line 2 !!!!

So, my 2023 Form 8880 is correct and 2022 was wrong.

But, it doesn't make any difference - I just like to compare my returns from year to year and note any differences. THANK YOU!

dmertz

Level 15

If $272.28 is shown on 2022 Form 8880 line 1, it means that you mistakenly reported your Roth 401(k) contribution as a (presumably Roth) IRA contribution. A 401(k) is not an IRA. Amounts shown in box 12 of your W-2 are to be entered only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.

The result of mistakenly entering a $272.28 Roth IRA contribution wouldn't have affected your filed tax return other than to include incorrect amounts on 2022 Form 8880 lines 1, 3 and 5. However, it also means that your IRA Information Worksheet shows $272 of Roth IRA contribution basis than you actually have, so you'll want to correct your Roth IRA basis going forward.