There is another option: Report the income on your tax return even though it's not included in your W-2 and you're not going to get a corrected W-2. To do so: Select "Income & Expenses" Scroll to the bottom of the screen to "Less Common Income" and click on "Show More" Next to " Miscellaneous Income, 1099-A, 1099-C" select "Start" or "Revisit" Select " Other income not already reported on a Form W-2 or Form 1099" Answer Yes to "Did you receive any other wages?" Click through to "Any Other Earned Income" and answer Yes to "Did you earn any other wages?" Mark the button next to "Other" for Enter Source of Other Earned Income Provide a description such as "Return of Excess 401(k) deferral" and the amount.

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BrianStoffel

Level 2

Solved

Migrated Content

Forum|Forum|4 years ago
March 15, 2022
1 reply
4 views

Best answer by DavidD66

There is another option: Report the income on your tax return even though it's not included in your W-2 and you're not going to get a corrected W-2. To do so:

Select "Income & Expenses"
Scroll to the bottom of the screen to "Less Common Income" and click on "Show More"
Next to " Miscellaneous Income, 1099-A, 1099-C" select "Start" or "Revisit"
Select " Other income not already reported on a Form W-2 or Form 1099"
Answer Yes to "Did you receive any other wages?"
Click through to "Any Other Earned Income" and answer Yes to "Did you earn any other wages?"
Mark the button next to "Other" for Enter Source of Other Earned Income
Provide a description such as "Return of Excess 401(k) deferral" and the amount.

DavidD66Answer

Level 15

There is another option: Report the income on your tax return even though it's not included in your W-2 and you're not going to get a corrected W-2. To do so:

Select "Income & Expenses"
Scroll to the bottom of the screen to "Less Common Income" and click on "Show More"
Next to " Miscellaneous Income, 1099-A, 1099-C" select "Start" or "Revisit"
Select " Other income not already reported on a Form W-2 or Form 1099"
Answer Yes to "Did you receive any other wages?"
Click through to "Any Other Earned Income" and answer Yes to "Did you earn any other wages?"
Mark the button next to "Other" for Enter Source of Other Earned Income
Provide a description such as "Return of Excess 401(k) deferral" and the amount.

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BrianStoffelAuthor

Level 2

@DavidD66 Just so that I understand, I should enter a negative number for the amount of return of Excess 401(k) deferral?

DanaB27

Level 15

You will enter a positive number.

Please note for the Tax Year 2022 tax filing due April 15, 2023:

2022 Forms 1099-R will be issued reporting the excess.

Form 1099-R with code P in box 7 can be ignored if you reported the excess as described above in 2021.
However, the earnings on Form 1099-R with Code 8 in box 7 should be reported in 2022.

[Edited 3/16/2022 | 7:10am PST]

@BrianStoffel

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