TurboTax does not account for it, your employer does in box 12 on your W-2.
Or do you mean that you are getting an error on the W-2 box 12?
This is currently being investigated by TurboTax, but in the meantime:
You should NOT change any W-2 information. The IRS gets a copy from the employer and what you report must match. In addition if the W-2 box 1 amount is less the the box 3 amount the difference must be accounted for in box 12 - if not, that could be a "red-flag" audit trigger.
TurboTax has released a FAQ on this issue - the workaround answer is to print and mail the return.
Excess 401(k) Contribution Preventing e-File
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/7327357">https://ttlc.intuit.com/replies/7327357</a>
Yes, the difficulty, I think, is that my employer has correctly withheld and reported the contributions, but TurboTax doesn't see them as an allowable contribution, but instead an excess contribution, because there is no where to report that I am eligible for the $3,000 15 year catch-up provision. I believe what you are saying is that the return will be computed correctly if I enter the amounts as my employer has reported them, and simply file by mail. Thank you for your assistance.
Correct, even thought the W-2 is correct, TurboTax will flag it as an error and prevent e-file. Until they fix this (time unknown) the only way to file is to print and mail.
Intuit, please release a fix for this. I have the same problem (can't e-file with a legitimate $27,500 403(b) contribution for 2018).
Yes, please FIX!!! Mailing not reasonable option. Thank you. Our issue is also the 403b 15 year catch up limit.
I have the same issue. This is unacceptable. I spoke to a turbo tax agent for 45 minutes this morning. He didn't even know what the 15 year provision was and had to look it up in the IRS website (still couldn't find it). I found the info for him on the IRS website...poor service!! Then he spoke to his supervisor who suggested I enter 24500 instead of the 27000 amount listed on my W2. He told me not to worry, putting that amount wouldn;t be a red flag to the IRS and I shouldn't be concerned about an audit. REALLY!!
The same thing has happened to me. Will there be an update to the update before the filing deadline?
The same thing has happened to me. Will there be an update to the update before the filing deadline?
TurboTax does not make software changes this close to the due date.
Yes please fix this before filing deadline--efiling is the main reason I use TurboTax!!
Good news: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4732918">https://ttlc.intuit.com/questions/4732918</a>. Update coming 4/12.
Don't look for it first thing in the morning - most updates take place late in the day - up to midnight.
I just tried and was not able to proceed past the error. I will try again tomorrow and hope for the fix to work. If there's a trick to get past the error, please share.
All I can say is to first download all software updates. Then run the check and try to e-file again. My override on the W-2 "excessive" 403(b) contribution was automatically removed -- after the latest software update -- and TurboTax allowed me to e-file.
Best of luck!
Thank you for the follow up. Do you use the online or desktop version?
I use the online version which updates automatically. There's no way to update the online version manually....that may be the issue on my end if you are using the desktop version. Maybe it will be ready tomorrow.
There really were two problems, one with the 457(b) 403(b) if you had Designated Roth contributions and were over 18,500, and one for people who were over 24,500 because of a 15+ years of service catch up. They fixed the first one, but I haven't seen evidence in the online version of the second one being fixed. Fingers crossed for tomorrow!
I use the desktop version (download) of TurboTax Home & Business. Try forcing a download/software update if you are using the desktop version.
My case is actually for my father, who legally contributed $27.5k to his 403(b) plan at a private college (Duke University) in 2018. This amount was $18.5k + $6k (over 50) + $3k (his last year of the 15-year catch-up plan).
TurboTax worked for e-file for my father today on the desktop version, including his extra $3k (the 15-year catch-up, total limit of $27.5k after the age-50 $6k addition).
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I hope this helps! And I suggest that you bug Intuit customer service (by phone) about the needed parallel update to the online version.
By the way, I originally paid for a state e-file license ($25) to file this return.
After the bug, I contacted customer service and demanded a refund, as I thought I had to do a paper file. This was a tedious experience, and I have not yet seen the credit appear on my credit card.
That said, I was finally able to use the e-file license for this tax return. So I am fine with being charged the $25 state e-file charge at this point. And I won't pursue this matter further.
But TurboTax, you really need to get this stuff right. I am tempted to switch to one of your lower-priced competitors next year.
I have the online version and was just able to file! The error about 27k being over the 24.5k max no longer showed up and I FINALLY filed without issue.
Same with me! TurboTax, this process raked me over the coals this year. This was a simple fix, first brought to your attention over 2 weeks ago. I will be looking at other possible options for next year.
Product updates cannot be done that quickly. There are 4 different online versions and 10 different desktop versions that the "fix" has to be applied to and tested to be sure that it does not break something else. 2 week turn around is very fast for a tax update to be tested and fit into an already established update schedule and then re-tested for any interaction of the fixes. Updates are usually planed many weeks in advance.