I have a situation on my 2018 W2. Have D17 and also D. Should I ignore D17 on my 2018 tax form. These are in Box 12b - 401K

[BMcCalpin]

Is the "D17" actually "DD"? This is a legitimate code in box 12 on your W-2 (D17 is not).

[Spino]

Good catch, Bill

[gkmk]

I have checked my W2 again. Here is the clear picture... 12a - DD $xxx, 12b - D 17 $xxx, 12c - D $xxx

[gkmk]

Thanks for your feedback

[Spino]

Then that's what you should report. Still, I can imagine DD looking like D 17. TT says, "The "17" in code D17 refers to a contribution made for 2017 and is a redundant indication since code D by itself on a 2017 W-2 already means a contribution for 2017. Ignore the "17" and select code D from TurboTax's drop-down box. [This doesn't quite explain your situation because it refers to a 2017 W2, but it gives a pretty good hint.]" It appears this would be related to last year, so your D17 is from one tax year (not this one) and the D is for this tax year (no need for an 18). So, you should type the D17 in, but select "D" from the drop-down box, which you also will select for 12c.

[gkmk]

First part is correct. D corresponds 2018 and D17 corresponds to 2017 (messed up by employer).

Now, on the second part How/Where can I can type the D17. There is no option or place for that. I only see the letter code D to be selected from the dropdown and the corresponding column only takes the Dollar Amt.

So, how can I indicate the "17" in the tax form, where "17" is reflected in the W2 ? Without the "17" the software is indicating that I have made excess contribution, which is how IRS would also then interpret ?

[BMcCalpin]

You mean that your employer admits that the D is for contributions to your 401(k) plan in 2018 and that D17 is for the 401(k) plan in 2017? Did your employer remove both years' contributions from Wages in box 1 (probably not)? TurboTax doesn't have an option for D17 because employers are not supposed to mix years on their tax documents. If your employer removed the 2017 contribution from Wages on your 2017 W-2 but forgot to enter the D amount in box 12, then they should have corrected the 2017 W-2 and you may have needed to amend your 2017 return.

Ask your employer if they really intended the D17 for the 2017 401(k) plan contribution, and if they removed it from Wages on your 2018 W-2...

[gkmk]

I am checking further, based on the questions raised. I will update soon with some clarification that I get from my employer, along with looking at 2017 W2, paystub etc. Thanks !

[gkmk]

Here is what I have found... The D17 amount is for 2017 401K, but the amount was actually deducted in 2018. Basically, taken out of 2018 Income, for 2017 401K contribution.

So, the 2017 401K contribution was less by this amount reflected under D17. Since, it was the employers mistake, they took that amount from the 2018 pay to be accounted for the 2017 401K contribution. They have then reflected this in the W2 as D17.

[gkmk]

The answer to the question "Did your employer remove both years' contributions from Wages in box 1 (probably not)? "

YES. They have removed both years' contribution from Wages in Box 1.

[BMcCalpin]

I believe that your employer should not have done this. They should have issued you a corrected W-2 for 2017 and now another one for 2018. Then you would need to amend your 2017 return and maybe your 2018 if you have already filed it. @Spino your thoughts?

[gkmk]

Well, I am reaching out to my employer again for their input on this. If I include D 17, then the software shows excess 401K payment. If I don't include it, then it could be identified as a discrepancy...
Is this situation, only because of the software ? Wonder if it would be different if this 1040 is done manually, along with the worksheets etc. ?

[BMcCalpin]

I am not surprised. Your W-2 indicates twice the "normal" 401(k) contribution for 2018. That is why I don't think they way they did it is correct.

[Spino]

Note that you can go ahead and file if you need to, using some of the strategies discussed, but of course everything is nicer if you can get them to adjust the W2. However, I have noted that some entities, who would no doubt prefer to remain nameless, would rather not make changes, which suggests errors were made, and continue to defend a wrong result, if they feel that has less downside for them as an entity, department, or individual performer. So at the end of the day, you may be faced with taking what you know and what you have and making the best of it. It happens. This year one such entity refused to revise the 1099, which was in error, but did agree to write a letter with the correct facts, and that it was the taxpayer's responsibility as to how to file. We'll see if I actually get the letter, too!