Software generates wrong info on Box 12G in 2021 Form 1040 W-2 Summary Turbotax Worksheet. Answered as State Government Employee. It was listed as nongovernmental 457 plan. Any solutions?

[JohnB5677]

I have posted two sample W-2's, and they seem to be entered correctly.

• I entered one with a code G posted to box 12
• On Form W-2 it indicates code G and the proper amount.
• I then went to the W-2/W-2g Summary
• In Box 12a (Total of Box 12) was the value I had put in for code G
• In Box 12 d (Deferrals to government 457 Plan) was the same value

I'm not sure where you are seeing the discrepancy?

[P111]

Thank you JohnB5677. I entered the amount in Box 12 G and answered related question regarding 12 G  confirming that Employer is state or local government. When check on W2/W2G Summary (Turbotax Worksheet), the amount are correct but it was in Box 12e (Deferrals to non-government 457 plans) and not in the Box 12d (Deferrals to government 457 Plan). 

I also noticed that on Form W2 , Wage and Tax Statement (Turbotax worksheet), the box 12 G was check as " Employer is not a state or local government". Even though, I answered "yes" to Is my employer a state or local government? question. 

[DaveF1006]

It depends. Did you try to uncheck the box in 12G?

[P111]

Thanks DaveF1006. There is no box to check on for 12 G. You fill in 12 G section and answer the question if your employer on W2 that sponsor12 G is state/local government.  I filled in the G section and answered yes to the state/local government employer. Then the PDF worksheet was generated and indicated that my employer is not  state/local government and designate my 12 G to non-governmental 457.  

[MA2022]

I am having the same issue.  There appears to be a bug in the tax year 2021 software.  (The tax year 2020 software handled this situation correctly.)  What is the solution, please?

[BillM223]

An issue with TurboTax asking if your employer is a state or local government has been identified and is being worked on.

[P111]

Thank you BillM223. Please advise how I could follow up on the current status on this issue. 

[BillM223]

There are two ways: one is that the issue is corrected and goes into the updates - Online updates are automatic and CD/download updates generally happen when you open your software o rgo to Online (at the top) and click on Check for Updates. Note that once the early rush has passed, updates tend to be applied once a week...and no, I don't know where we are in the rush.

The other way is a "Containment" where TurboTax publishes a Help page referring to an issue and asking you to click a button to sign up to be notified of a resolution by email. I don't see a Containment yet, but if I see it, I will let you know.

[P111]

Form W2, Wage and Tax statement (Turbotax worksheet) has been updated. Now the box shows "Employer is a state or local government". The worksheet no longer has "NOT" word for box 12G. It is checked for my case which is now accurate. 

However, on the  Form 1040 Forms W2-W2G Summary (Turbotax worksheet), It still show input from 12G amount in the 12e (Deferrals to non-government 457 plans) instead of 12d (Deferrals to government 457 plans).

I hope Turbotax fix this soon. 

[BillM223]

P111, thank you for that follow-up. I will forward this to the right place.

@P111