Error on IRS SS Wks — I removed "covered by retirement plan" on W-2 but worksheet will not uncheck "covered by retirement plan". This is a huge $$$ problem.

[tiutniwantsdata]

I do not believe either of I or spouse was "covered" in 2023. Spouse's W-2 box 13 is blank (NO "ret. plan"). Mine is checked but I think it's in error (am inquiring). But the software will no let me remove the selection on the IRS SS Wks, nor let me delete that form and redo it.

[ThomasM125]

You can try deleting the W-2 form entry, the one on which you checked the box indicating you had a retirement plan, and then re-entering it.

[SteamTrain]

Note, that if you made even one contribution to a 401k thru your W-2 employer...that also is considered as having a retirement plan at work.   (I Imagine the same applies to 403b, and maybe 457 plan contributions too).

[tiutniwantsdata]

Thank you very much. I figured that to be true. Two parts to follow up response:

• Tax law: Yes I agree, and I think my spouse might be in the "at least one contribution" during 2023 category. My situation is not so clear: I retired at the end of 2022, started getting payments from City retirement system in 2023, and continued working half time not enrolled in the City retirement system. The only possible "contribution" to what could be called a "retirement system" in 2023 was a small amount of vacation time to a deferred compensation plan in early 2024 from 2023 (and even that was misdirected and is still not in the DefComp account). I cannot find info on deferred comp plan status (haven't tried hard). Do you know code section numbers?

• Tax software: When I turn off "covered by retirement plan" on W-2 form, setting does NOT carry forward to let me use IRA contribution worksheet to see impact on tax due. Not letting me do that, or telling me how to override worksheet so I can do that, is a serious flaw in the software (IMHO).

[SteamTrain · Accepted solution]

The only thing I can think of is to check your spouse's W-2  (i.e. Edit it), and make sure it is assigned to being her W-2 and not yours.