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Level 1
April 5, 2022
Question

deferred compensation

  • April 5, 2022
  • 1 reply
  • 1 view

My son-in-laws employer is not subtracting the amount of deferred compensation (D on line 12a) from federal wages.  I have spoken to him about this but his employer refuses to change anything.  He will be taxed again on this money when it is taken out if there is no way to chaange it.  Any suggestions or help?  

1 reply

VolvoGirl
Level 15
April 5, 2022

Is box 1 the same as box 3 or 4?  Maybe it's a ROTH?

Level 15
April 5, 2022

A contribution to the designated Roth account would be reported with code AA, not code D.  If the employer has not reduced the wages reported in box 1 by the code D amount, the employer needs to correct either the amount in box 1 or the code in box 12.