Do I have to remove the excess 401k contribution from my w2 (income section) after having report them as misc. income in TT to efile? TT will not let me efile otherwise.

No, you should not manually correct your Box 12 entries on your W2.  You have taken the right steps to include your 401(K) contribution on your 2018 Tax Return.

At this point, you are running into an e-filing issue within TurboTax.  An update to fix the issue is expected to be released around 4/5/2019.  You can check out this TurboTax FAQ for more information: Excess 401(k) Contribution Preventing E-filing.

Be sure to sign up for updates to be alerted as soon as there is a solution.  If you do not want to wait for an update, you have the option to paper file your tax returns as this is only an e-filing issue.

@Rachel_W, has this been resolved? It's 4/6/2019 and I'm still not able to e-file because of this issue.

@VArora: Is there a plan for resolution and is the eFile issue scheduled be resolved before 4/15/2019, or is TT punting until after tax day which would be pretty lame for a leading tax software tool for such a simple fix that is already checked for earlier in the tax filing/review process ?

I got a note that hey won’t be able to fix the bug and I have to file by mail. Completely ridiculous and disingenuous considering that you only get to know about it after you have paid TT. Don’t even know how to request a refund

Same here, still unable to e-file after updating today. Now the FAQ says to paper file with this issue.

@VArora:  This is ridiculous.  This is both a common problem and something that happens every year for people.  Why can't this be resolved -- I didn't file waiting for this to be fixed and now telling me to paper file?

This is kinda crazy... It's 4/6 and no update to an obvious issue?   Makes me wonder how reliable TT is.

this is sooooooo frustrating and disappointing, if this cannot be resolved for this year, I will never come back again, and i need a refund.

@TurboTaxRachelW @VArora how do we request a refund or a discount?

I would like to get a refund as well.  This is not professional at all.

@TurboTaxRachelW - Same here. This is really terrible. I would like a refund as well. I even signed up for your Premier edition thinking I was doing something wrong until I found out about this bug.

It’s uacceptable this software error prevents e-filing. My state requires e-filing because of my tax liability (and TT charged my $25 to file my state return!). When will this issue be fixed?

I tried calling the TurboTax help line.  The person there told me that the "bug" was fixed and if I couldn't file it meant that I was required to paper file.  This doesn't make sense as I had a similar issue in the past when either my wife or I changed jobs before.  He suggested that the only way I could try to delete my entire return and start over, which is also nuts.  

Turbo Tax Fix your software, this is ridiculous! You managed to charge me the e-file fee first yet you will not let me e-file due to your bug.

even if i do paper file, the generate paper work does not include the excessive contribution amount I entered, what the [profanity].

@ammpet - interesting observation. I just snail mailed mine this morning and I wasn't able to identify the 'excess contribution' that I had entered in the 'miscellaneous' income that I had entered based on the recommendation. I just assumed it was included in one of the sections somewhere else because of which I couldn't see the exact amount. Looks like I ended up doing a wrong filing too.

@pimathur  but if you check the refund status, adding/without adding them in turbotax actually have an effect in the refund amount, so not sure why it is not included in the tax forms, this is super anoying and confusing

The excess contribution is already included on form 1040 line-1. We need to attach a copy of 1099-R showing excess contribution along with W2 which should add up to that amount. I believe, no additional form is needed for filing.

@Jay  I think you are right, but in 1099-R, box 7, should we put code 8 or code P?

I have the same issue and its baffling that TurboTax cannot fix this issue. This is one of the common use case, and should have been fixed from day 1. I just filed with H&R Block and they handled the excess contribution (adding the excess amount as income) without me having do to anything.

This is disappointing on TurboTax part.

@ammpet I think, it's P if excess contributions are taxable in 2018. Below definition of the two codes from 1099-R instructions.

8—Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2019.
P—Excess contributions plus earnings/excess deferrals taxable in 2018.

I agree with the others -- the excess 401k deferral issue should be fixed NOW so that we can file electronically as we have already paid for it.  Can we at least get a definite answer as to whether a fix is still in progress?

@ammpet @Jay @pimathur hey guys, i also don't see the additional paperwork for the excess amount that I did in TT but I also don't see my total 401k contribution anywhere on the 1040 so I am a little ocnfused as to how the IRS would know how much 401k i contributed. I guess from the copies of the W2 that we attach? Also, I was told that if I follow the procedure to report my excess 401k, i don't need to attach a 1099 R (which typically would ocme in 2020). Is that not accurate? Do I need to generate a manual 1099R now that this bug has occured in turbo tax. @TurboTaxRachelW  

@Jay Jay, what if you didn't get a 1099R? Do you have to manually generate it