Get your taxes done using TurboTax

The issue with Box 12 in TurboTax is related to recent changes in how SEP (Simplified Employee Pension) and SIMPLE (Savings Incentive Match Plan for Employees) plan contributions are reported on tax returns. Let me explain:

1. Recent IRS Changes:

   • On January 8, 2024, the IRS released a notice describing several changes required to implement the Secure Act 2.0.
   • These changes specifically impact how SEP and SIMPLE plan contributions should be handled on tax returns.
   • The code “S” in Box 12 refers to how to handle a SIMPLE plan.
   • These last-minute IRS updates unavoidably cause delays for tax processors like TurboTax.
   • TurboTax needs time to understand the full implications of the IRS notice and then code and test the...¹.

2. Timeline and Resolution:

   • TurboTax programmers are actively working on implementing these changes.
   • While there isn’t an exact estimated date for completion, you can periodically check by editing your W-2 every 5-7 days to see if the issue has been resolved.
   • The IRS is not open for filing until January 29th, so there’s still some time to wait¹.

3. Patience and Potential Benefit:

   • Although it’s frustrating, waiting for the fix is essential.
   • Additionally, there’s current legislation in Congress that could increase the Child Tax Credit (CTC) for 2023.
   • So, this delay might ultimately be beneficial for you¹