For some reason, TurboTax is saying my wife overcontributed to her retirement plans based on her W-2 by ~$30k even though her box 12, line D says she contributed $20,000 (she contributed $500 under the limit for 2022). I can't figure out how TT is arriving at the total contribution number from her W-2 and have double-checked that the automatically imported W-2 fields are correct.
Can anybody explain what's going on here?
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It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online:
The instructions for TurboTax Download:
We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.
Token: 1135544. @DanaB27 . Thanks!
Thank you, I reviewed your token. Your wife has two W-2s entered, one shows $20k in box 12 with code D plus $500 with code AA and the other shows over $30k in box 12 with code D. Therefore, combine she is over the limit.
Also, when adding your two W-2 code D entries in box 12 you have an excess deferral too. But I saw that you entered your excess deferral already with the steps below.
Please be aware, if you do not take out the excess amount by April 15th, then you are taxed twice on the excess deferral left in the plan. This happens once when you contribute it (with the steps below) and again when you receive it as a distribution. You can't include the excess amount in the cost of the contract even though you included it in your income.
Please follow the steps below:
If you receive the distribution of the excess deferral and earnings by April 15th then please note for the Tax Year 2023 tax filing due April 15, 2024:
2023 Forms 1099-R will be issued reporting the excess.
Please see Pub 525 for additional information.
Hm.. I reviewed both her W-2s again and found the problem - one of the two was her main W-2, which I had scrutinized. The other was a minor W-2 and $30k is WAY more than the total amount of the W-2. It was a typo that either came from auto-import or myself - I can't remember which. Either way, I wish TT would show it's work when it's presenting the warning so I could've saved a lot of time chasing this down.
Thanks for your review and helping me spot the issue!
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