Do I have to report box 12 code D on my return if it is less than $100?

[ToddL99]

Yes - report any amounts listed in Box 12 of your W-2.

The entry (Code D - Elective Deferral to 401(k)) has already been accounted for in Box 1 of your W-2; as an elective deferral to a 401(k), the amount was not included in your Wages. Box 12 provides the required explanation for that adjustment to taxable earnings.

[tjstrickert]

Do I have to take the tax credit that it's giving me? I know that sounds silly but I don't want the credit

[DianeW777]

The W-2 must be recorded exactly as it is printed in your tax return.  Remember the IRS gets a duplicate copy of that W-2. I understand, you may not want the credit but it's yours and whether you take take it or not the IRS will assume you were entitled to it. 

This code means that you put money into a tax deferred account and when it is removed you must pay tax on it at that point.  For a smoother tax situation you should keep the credit because you will pay the tax on distribution of the funds. Even if you keep records the IRS will follow protocol for the transaction now and later.

[Anonymous]

My 2021 W-2 shows Box 12 as follows:

D20 51.60

D 19500.00

When I enter these lines in TurboTax, I get this error: Check the following entries against your W-2 and delete the duplicate box 12 code(s) using the trash icon.

These are not duplicates. How do I add the "20" next to the letter D?

[VolvoGirl]

The 20 refers to the year 2020.  Ignore the 20.  Add both boxes together for Code D.

[Anonymous]

I thought about combining the amounts OR ignoring the $51.60, both of which seem wrong in different ways. I'd like to see some official guidance on this since combining the amounts puts me over retirement cap, and frankly I didn't ask for the $51.60. I would gladly give it back!

References:

IRS Guidelines, page 19:

2022 General Instructions for Forms W-2 and W-3 (irs.gov)