457 deferred compensation w2 income: after entering w2, Turbotax program asking if this was a contribution to the plan or a withdrawal from the plan. I do not understand the question. I am receiving a w2, so is it not by definition a withdrawal?

The confusion may lie with how contributions are reported on for a 457 plan. Contributions to these plans are reported on a W2 through payroll deductions. Respond accordingly and indicate it was a withdrawal if you received a distribution from the plan.

 

457(b) Deferred Compensation Plans

VictoriaD75, thank you for your feedback.  The struggle I am having is that if I answer the TurboTax question stating it is a distribution, then TurboTax Premier Desktop ask me to input a state and some dollar amount for which it does not explain.  If I choose the state I live in, CA, and enter the $ amount of the distribution, it reduces by 1/6 the amount of refund I previously showed due.  So I am confused why it wants State information and  what $ amount I am to input. There is no description.  I have had Deferred compensation for at least 7 prior years and TurboTax as never highlighted this request previously.

Are you seeing a change in your federal refund or state?  A change in the state refund after entering the state and amount is to be expected, as this is the entry that tells TurboTax the income was associated with your resident state.  If you are seeing a change in your federal refund, this is not expected behavior and we may need to assist further with troubleshooting.

The answer is changing my federal refund.  I do not have the program in front of my now but depending on my answer, it ask me for specific information related to a state.  It wants me to choose a State and Enter a Dollar amount but it does not describe what dollar amount should be entered.  For example, pull from specific box on your w2.  

The correct number is likely the information from Box 1.  

We can take a closer look at it for you with a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

 

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.  To avoid issues with our system removing numbers, please post a screenshot if you are able.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

 

Thnak you for your reply.  I will need to work on pulling the file you request hopefully tomorrow.