What year was the excess for - 2018 or 2019? What year was it returned?
If a 2019 excess returned in 2020 then enter it this way:
Do not include any earnings returned in 2020 - those will go on a 2020 tax return next year.
Excess 401(k) deferrals should be reported in:
(There are several screens to click through to get to the right place)
Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.
That will add it to the 1040 line 1 as returned wages.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
