Subject kinda says it. I qualified for a Deferred Comp Plan a couple decades back and deferred a bunch. Started receiving DCP payments about 7 years ago after employment ended and the W2 has shown that difference every year. We'd found out that the employer had calc'd Fed amt based on non-deferred but had done the State tax amount based on total compensation (including deferred amt). No one knew back then but that's the way the employer did it. Now that W2 shows different amount as taxable for State - because the taxes were already taken. TurboTax lights up that field in red and probably will complain until April... Is there a way to calm things down and just accept that real difference?
