topic Re: Form W-2 in Get your taxes done using TurboTax

Form W-2

Willie52 — Tue, 10 Feb 2026 09:51:44 GMT

There is a form error in TurboTax Premier 2023 desktop version on Form W-2. The amount in Box 11 Non-qualified plans is correct and matches the amount in Box 11 distributions from Section 457, but the error states the amount in the State Allocation (11b) does not match. The state ID (11a) is correct and the amount is the same as the other two amounts in box 11. All three amounts were automatically posted on the form when I entered the W-2 information through EasyStep.

The W-2 includes both non-statutory stock plan and non-qualified plan income.

Re: Form W-2

Willie52 — Fri, 19 Jan 2024 21:43:22 GMT

The extra fields in Box 11 for the Sec. 457 and non-qualified plans State Allocation were not included in last year's TurboTax Premier desktop version for Macs.

Re: Form W-2

LeticiaF1 — Thu, 25 Jan 2024 02:05:30 GMT

If you are still getting an error, it would be helpful to have a TurboTax ".tax2023" 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: Go to the black panel on the left side of your program and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up that says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

Here are the instructions if you are using TurboTax CD/Download:

Click on Online in the top left menu of TurboTax CD/Download for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number then place it in this issue.
We can then review your exact scenario for a solution.
Please also tell us any states included in the return.

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.

Re: Form W-2

Willie52 — Thu, 25 Jan 2024 19:39:54 GMT

I am using the desktop version, so there is no tools menu on the left. I am attaching a photo of box 11. Here is the error message at the bottom of the form:

"From W-2 (xxx): Nonqualified Distribution (State Amount) - The total amount of Sect. 457 state distributions does not match with the amount of Sect. 457 distributions reported on the federal return. Adjust the state entries as need."

As I wrote in the original posting, TurboTax automatically populated the fields in box 11. You will see in the photo the amounts match.

Re: Form W-2

BillM223 — Thu, 25 Jan 2024 23:30:14 GMT

Re: diagnostic file,

Leticia gave you the instructions for how to do this for the desktop version of the product:

"Here are the instructions if you are using TurboTax CD/Download:

Click on Online in the top left menu of TurboTax CD/Download for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number then place it in this issue.
We can then review your exact scenario for a solution.
Please also tell us any states included in the return.

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."

When you create the diagnostic file, be sure to post a response in this thread and include "@" "LeticiaF1" (without the quotes or the space in between) so that she will be notified.

Re: Form W-2

Willie52 — Fri, 26 Jan 2024 16:23:05 GMT

I am not using Windows. I am on an iMac using macOS Ventura Version 13.6.3.

Re: Form W-2

Willie52 — Fri, 26 Jan 2024 17:43:38 GMT

After some additional testing, I'm pretty sure I have determined what is causing the error. After entering the W-2 through EasyStep, on Form W-2 in Box 1, I have an amount that ends in 55 cents. That total amount gets divided into two amounts: Box 3 contains an amount that ends in 70 cents and Box 11 contains an amount the ends in 85 cents. When it transfers the amount in Box 3 to Form 1040 line 1a, the amount is rounded up. When it transfers the amount in Box 11 to Schedule 1 line 8t, it rounds that amount up as well. If I go back to Form W-2 and round up both the second amount (Distributions from sect. 457 and nonqualified plans) and third amount ((cont) Sect. 457 and nonqualified plans State Allocation) in Box 11, the error goes away even though these amounts no longer match the unrounded amount in the first field of Box 11 (Nonqualified plans).

I suspect there is a rounding issue somewhere in the software.

Re: Form W-2

DaveinCharlotte1 — Fri, 26 Jan 2024 19:34:42 GMT

There is a separate ongoing discussion about this issue, titled "W-2 Box 11 Glitch?" by JCC457 which can be found by clicking on the "W2" button. (Not sure why Willy52's post does not show up there.) In that thread over a half-dozen users across as many states have reported this same issue.

Willy52, your "rounding error" solution gave me some encouragement, but alas when I tried entering only round numbers (no cents) I still get the error message.

BillM223, in that thread you said you were attempting to reproduce this problem. Any progress yet?

Re: Form W-2

Willie52 — Fri, 26 Jan 2024 20:02:54 GMT

Once I entered the rounded amount of Form W-2 Box 11 into the second field, TurboTax automatically updated the the State Allocation amount to the same amount and showed no error. In fact, I can put any whole dollar amount in the second field and TurboTax will match that amount in the third field of Box 11 with no error. It seems that should be incorrect. If I add any amount in those two boxes with cents included, I get an error.

Re: Form W-2

AnnetteB6 — Sat, 27 Jan 2024 19:33:13 GMT

The situation you described regarding an error flagging state distributions from a 457 account is a known customer experience that is being addressed by the TurboTax development team. It is expected to be resolved after 2/2/2024.

@Willie52

@DaveinCharlotte1

Re: Form W-2

Willie52 — Wed, 31 Jan 2024 21:41:34 GMT

The update I applied this morning to my Mac desktop version of Premier appears to have corrected the software error. I was able to enter all three amounts in W-s Box 11 with cents included without encountering an error.

Re: Form W-2

Willie52 — Wed, 31 Jan 2024 21:42:34 GMT

W-2 Box 11

Re: Form W-2

PADenny — Sun, 24 Mar 2024 00:59:37 GMT

I am having a somewhat related issue. I have been using TurboTax for many years and this is the first year that I am receiving an error message regarding a W-2 for monthly payments received from a nonqualified pension plan. The W-2 contains exactly the same information for 2023 as in past years. The payments are taxable for Federal purposes, but not for Pennsylvania (where I reside). The W-2 contains "PA" and the employer number in Box 15, and $0.00 in both Boxes 16 and 17.

I am receiving a Smart Check error message stating:

"Form W-2 (XYZ Corp.): Nonqualified Distribution (State ID) does not match with any states entered in Box 15.

Nonqualified Dist (St ID) PA"

I have tried not entering anything in boxes 15 - 17 in TurboTax; entering information in box 15 but leaving boxes 16 and 17 empty; and entering the information in all 3 boxes (15 - 17) in TurboTax. The error message was received under all 3 of these approaches.

Thoughts on how to address this error message?

Re: Form W-2

PADenny — Sun, 24 Mar 2024 01:11:28 GMT

I am receiving a Smart Check error message stating:

"Form W-2 (XYZ Corp.): Nonqualified Distribution (State ID) does not match with any states entered in Box 15.

Nonqualified Dist (St ID) PA"

Is this issue also being addressed by TurboTax?

Re: Form W-2

MonikaK1 — Sun, 24 Mar 2024 16:24:10 GMT

From your description (assuming it says Nonqualified Dist not Diet), it appears that the error may have to do with the fact that you have a State ID and employer ID on the W-2, but no state wages or state tax withheld, or that the format of the State ID is not as expected for that State. If you see the error in Review, the program will normally provide a screen with the error highlighted and ask for an action to correct it.

You might also try going back to the W-2 interview to see whether the answer to a particular question about the W-2 caused the error, or if the State employer ID number was entered correctly. In the alternative, if there are no state wages or stage withholding, try deleting the Box 15 entries altogether, or deleting the entire W-2 and reentering it without Box 15.

Re: Form W-2

PADenny — Sun, 24 Mar 2024 17:09:56 GMT

Yes, it says Nonqualified Dist.

I am using the desktop version of TurboTax (for a Mac), and I enter my information using EasyStep.

The W-2 information is exactly the same this year as in past years, with the employer ID info being the same.

As to the error, it only appears during the Review process. As to the highlighted item requiring correction, it shows the "PA" in the shaded box (with the wording preceding it being the wording I noted in quotation marks in my message).

I have gone through the interview process a number of times. The only unusual thing I have noted is that TT requires me to enter a state and an amount when I select that I took the money out of my nonqualified plan, even though for PA purposes there is no taxable distribution. I have been entering "Pennsylvania" via the dropdown box, and the full distribution shown in Box 1 of the W-2.

The employer ID has been entered correctly.

As noted in my original message, I have tried excluding any information from boxes 15-17, and other versions thereof; but the error message continues. I have also tried re-entering the W-2, but with no success.

I wonder whether the issue is somehow related to the dropdown in TT showing Pennsylvania, while the box 15 info uses the abbreviation PA? If so, I don't know how to correct this.

Re: Form W-2

MonikaK1 — Mon, 25 Mar 2024 19:19:24 GMT

Did you try deleting the Box 15 entries altogether, or deleting the entire W-2 and reentering it without Box 15?

I tried replicating this (on a Mac) and did get similar errors, but it allowed me to continue on to the File section.

Some review errors that don't prevent e-filing do allow you to continue. If you are otherwise ready to file, try continuing without addressing this error.

Re: Form W-2

PADenny — Mon, 25 Mar 2024 19:39:33 GMT

I hesitate to not include the Box 15 information in TurboTax since there is in fact information shown on my W-2 for boxes 15 - 17, with boxes 16 and 17 being "$0.00", and not blank. I have included this information in all of my TurboTax completions in past years.

When you say that you replicated this on a Mac and got similar errors, what did you replicate exactly? Did you include information in boxes 15 - 17 and receive the errors, or are you saying that you left boxes 15 - 17 blank (with info being included as to taking a distribution from the plan, and including a state ID of PA and an amount in the sub-sections of Box 11, OR maybe some other approach(es)?

And did your replication provide for the income/distribution to be included in Line 1 or 8 of the return? It is my understanding from some posts in the past year or so that the IRS made a change for last year's reporting (2022) such that this type of income is now to be reported on Line 8, Additional Income.

I also hesitate to try and file a return that has review errors. TurboTax should frankly not allow this to happen; rather, if there is a programming error, make the necessary programming change. Since you were also able to see the error in your testing, it seems to me it is obviously a programming issue.

Re: Form W-2

Vanessa A — Mon, 25 Mar 2024 21:18:06 GMT

Entering 0 does not mean anything to the state, IRS or TurboTax. It is something that frequently causes errors. If you have a state name in box 15, but only 0 in box 16 and 17, then the best thing to do is to leave boxes 15 to 17 blank. Otherwise, the program is looking to generate a form for the state but there is no need for the form.

You are not adding any income or making any subtractions by entering 0. It will not have any type of affect on the numbers on your return or the forms that are PROPERLY generated. If you enter a $0 on some forms it will generate a form that should not be included on your return. This in turn would create other issues with your return.

It is much better to just leave blanks where there are 0's.

Re: Form W-2

PADenny — Tue, 26 Mar 2024 17:56:34 GMT

Vanessa A and MonikaK1:

I had an opportunity today to delete my W-2 for the non qualified pension payments, and I reentered it without including any information in Boxes 15 - 17. The EasyStep process asks whether I took money out of my nonqualified pension plan. I tried to proceed without answering the question, but it ultimately required me to make a selection. I selected "Yes", and a dropdown box appeared requiring the State to be identified, and the amount. I selected "Pennsylvania" and entered the amount consistent with the amount in Box 1 of the W-2. Smart Check in the Federal section still provides the error message that the State ID does not match with any states entered in Box 15, and notes "PA" in the shaded box as the issue. [I did note that the W-2 income was properly being shown on Line 8 of the Federal return as Additional Income.]

I also noted that the same error surfaces when I perform the overall review that is inclusive of my PA return (the review that occur prior to the filing process).

Additional thoughts on how to address this issue, and actions I should take?