W-2 Box 12AA

[wenwright]

Why does Turbo Tax show W2 Box 12 AA in Form 8880 Line 1 for my 2022 return, but not my 2023 return?

My husband's W-2 for both 2022 and 2023 had amounts entered in Box 12AA.  And I entered the W2s correctly.

I know it doesn't affect much of anything, but it is a curiosity for me. 

[MarilynG1]

Your W-2 Box 12 with Code AA designates Roth 401K contributions.

Form 8880 is to calculated to determine whether you qualify for a Saver's Credit for your retirement plan contribution.

Were there any calculations on your 2022 Form 8880?

Even if you qualified for the credit in 2022, it's possible you didn't in 2023; there are income limitations.

Here's more info on the Saver's Credit.

[wenwright]

I am getting the 200.00 Savers Credit for both years. 

In 2022, Box 12AA was 272.28 and that shows on Form 8880 Line 1 for 2022.

For this year, Box 12 AA had 1327.25.  It does not show on Form 8880 Line 1.

But, guess what?  I just discovered that TurboTax for 2022, Form 8880 Line 2 has added together Box D and Box 12AA  together,  2,574.98 + 272.28 = 2,847.26.   Line 3 shows 3,119.  (272.28 too much)  The Box 12AA amount of 272.28, is on Line 1 AND included in Line 2 !!!!

So, my 2023 Form 8880 is correct and 2022 was wrong.

But, it doesn't make any difference - I just like to compare my returns from year to year and note any differences.  THANK YOU!

[dmertz]

If $272.28 is shown on 2022 Form 8880 line 1, it means that you mistakenly reported your Roth 401(k) contribution as a (presumably Roth) IRA contribution.  A 401(k) is not an IRA.  Amounts shown in box 12 of your W-2 are to be entered only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.

The result of mistakenly entering a $272.28 Roth IRA contribution wouldn't have affected your filed tax return other than to include incorrect amounts on 2022 Form 8880 lines 1, 3 and 5.  However, it also means that your IRA Information Worksheet shows $272 of Roth IRA contribution basis than you actually have, so you'll want to correct your Roth IRA basis going forward.

[wenwright]

The $272.28 only came from the W2.  I know that the W2 figures do not need to be entered anwhere else.

I wouldn't know where else to enter it.   So, it wasn't mistakenly entered.

On my 2022 IRA Information Worksheet in Turbo Tax, the "Basis in Roth IRA Contributions" shows 272.00.

and "Cumulative  Regular Roth IRA contributions..." =  272.00