Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Feb 2, 2023 5:02:57 AM

W-2 deferred compensation

W-2 for Deferred Compensation is being reflected on Line #8 instead of Line #1.  This causes an IRS reject, since they are looking for S/E (social security tax, etc.).  The Social Security taxes were collected by the employer at the time the deferral was made.  How do I get this corrected?

 

0 1 1327
1 Best answer
Expert Alumni
Feb 2, 2023 8:01:40 AM

Go back to your W2 entries and after verifying information on the form was entered correctly you will arrive a question asking if you took money out of your non qualified account.  Answer "No" to that question.  That will keep the amount on line 1 and not move the box 11 amount from line 1 to line 8t on Schedule 1.  

 

Box 11 is informational for the taxpayer; the Social Security Administration has their copy of your W2 already.  They use that box to properly credit your social security account.  

 

For income tax purposes the amount is taxable the same whether on line 1 or Schedule 1 line 8.  

1 Replies
Expert Alumni
Feb 2, 2023 8:01:40 AM

Go back to your W2 entries and after verifying information on the form was entered correctly you will arrive a question asking if you took money out of your non qualified account.  Answer "No" to that question.  That will keep the amount on line 1 and not move the box 11 amount from line 1 to line 8t on Schedule 1.  

 

Box 11 is informational for the taxpayer; the Social Security Administration has their copy of your W2 already.  They use that box to properly credit your social security account.  

 

For income tax purposes the amount is taxable the same whether on line 1 or Schedule 1 line 8.