Turbotax handling of W2 with Box 12 DD value

[fizzywater47]

I also noticed a change in the reporting of my W2 income. I am a retiree and also have DD in box 12a. My pension and deferred income have been reported on a W2 and appear on Line 1 of my 1040 SR for the past 10 years. This year my 1040 SR shows ZERO as W2 income on Line 1 despite my entering the info as W2 in Turbotax. Instead the amounts appear as Other Income on Line 8. Im not sure it affects the tax liability but a change on key lines could flag questions.

[AliciaP1]

The change in how the deferred income is reported is an IRS change for tax year 2022, not a software change so you will not raise any flags.  

Per the IRS' 2022 Form 1040 & Form 1040SR instructions:

Line 1h

Other Earned Income

The following types of income must be included in the total on line 1h.

Strike or lockout benefits (other than bona fide gifts).

Excess elective deferrals. The amount deferred should be shown in box 12 of your Form W-2, and the “Retirement plan” box in box 13 should be checked. If the total amount you (or your spouse if filing jointly) deferred for 2022 under all plans was more than $20,500 (excluding catch-up contributions as explained later), include the excess on line 1h. This limit is (a) $14,000 if you have only SIMPLE plans, or (b) $23,500 for section 403(b) plans if you qualify for the 15-year rule in Pub. 571. Although designated Roth contributions are subject to this limit, don’t include the excess attributable to such contributions on line 1h. They are already included as income in box 1 of your Form W-2. 

@fizzywater47

[mihai74]

Yes, I have the same issue. However, just entered the W2 in Turbotax and at this point I am not sure how that box will affect the taxes overall as I am still far from finishing the taxes. However, I observed that the hardcopy W2 does not have box 12 dd on it so no amount for that box, while the imported W2 shows an amount in box 12 dd, so that is a discrepancy that needs to be addressed either by Turbotax or on the W2 itself. I am hoping that by the time I submit my taxes this will be addressed, otherwise I will need to figure it out. For the money I am paying turbotax, I expect them to explain and address this discrepancy.

[KrisD15]

Box 12 code DD is reporting the cost of employer health insurance.

This amount has no bearing on your tax return and is informational only.

If you want to know why your employer added it to your digital copy and not your paper copy, you'll have to ask your employer. TurboTax only imports what is provided by your employer's payroll service. 

TurboTax cannot manipulate your tax documents. 

More about Box 12 code DD.