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pdkjr20
Level 2

BUG: Entering DD in box 12c is generating taxable income

I have an entry on line 12c of my W-2 with the letter code of "DD".

When I enter an amount, it reduces my refund so I know it is counting it as income.

This should not be the case.

 

Please advise when this bug is fixed so I can download the update.

 

Thank you

1 Best answer

Accepted Solutions
pdkjr20
Level 2

BUG: Entering DD in box 12c is generating taxable income

I figured out what is happening. Its a bug.

I entered the DD in the Step by Step interface.

However, when  I looked at the W-2 form, it was coded as W.

I used the drop down menu, to change it in the W-2 form and it corrected the problem.

View solution in original post

10 Replies
RayW7
Expert Alumni

BUG: Entering DD in box 12c is generating taxable income

The amount shown on your W-2Box 12, using Code DD, represents the of the cost of pre-tax employer-sponsored health coverage, and is for your information only.

 

The amount reported with Code DD is not taxable, but neither can it be claimed as a tax deduction (medical expense) by an individual taxpayer.

pdkjr20
Level 2

BUG: Entering DD in box 12c is generating taxable income

That's not the question. 

I know it's informational.

The problem is it is adding to income, which is a bug

DoninGA
Level 15

BUG: Entering DD in box 12c is generating taxable income


@pdkjr20 wrote:

That's not the question. 

I know it's informational.

The problem is it is adding to income, which is a bug


From the IRS Form W-2 for box 12 Code DD - https://www.irs.gov/pub/irs-pdf/fw2.pdf

DD—Cost of employer-sponsored health coverage. The amount reported with code DD is not taxable.

fanfare
Level 15

BUG: Entering DD in box 12c is generating taxable income

if it is informational and you know it is informational, don't enter that line item.

fanfare
Level 15

BUG: Entering DD in box 12c is generating taxable income

if you do that you will lose any state deduction for that DD amount that might apply.

DawnC
Employee Tax Expert

BUG: Entering DD in box 12c is generating taxable income

Where do you see it being added to your income on your tax return?   The code DD amounts are only included in your income if they are also part of your Box 1 wages.....

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pdkjr20
Level 2

BUG: Entering DD in box 12c is generating taxable income

Yes I can trick the software into the right answer but I thought they would actually want to have the software function correctly

pdkjr20
Level 2

BUG: Entering DD in box 12c is generating taxable income

When I enter it in the W-2 it immediately significantly decreases my refund. I assume if that is the only thing I have done...that it included it in income

pdkjr20
Level 2

BUG: Entering DD in box 12c is generating taxable income

I figured out what is happening. Its a bug.

I entered the DD in the Step by Step interface.

However, when  I looked at the W-2 form, it was coded as W.

I used the drop down menu, to change it in the W-2 form and it corrected the problem.

View solution in original post

bucwowmg
New Member

BUG: Entering DD in box 12c is generating taxable income

I need to start a new account. My Yahoo account is [email address removed] and new phone number is [phone number removed]!!! 

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