Empty box 1,2,3,4,5,6,7,8, 15to 20. Only filled are box 12a and box 14.

[MQ7]

Box 12 shows DD entry which is non taxable. The box 14 shows some insurance paid etc which is considered as taxable.  Box1, 2, and the rest don't show anything.  I did get paid NIH research grant money.  Since it is technically not a "wage"  so that's the reason it is  not included in Box1 etc?  Is my assumption correct?  The grant money is taxable and I file tax return for it.  In the grant money I do add the taxable insurance etc listed in the Box 14 of the W2.  I get this total taxable amount from the monthly pay stub.  If I report all income correctly, then should I just ignore this w2?  If  not what should I do with it? thank you.

[LindaS5247]

Generally, If your form W-2 does not report any taxable income, you can omit it from your tax return.  Keep it for your tax records. You stated you are reporting the grant money as income.

Box 12 amounts with the code DD are what you and your employer paid for your employer-sponsored health coverage plan. Code DD amounts are for informational purposes only and they don't affect the numbers in your tax return.

In general, the information that your employer lists in Box 14 of your W-2 does not have any affect your income tax return.

Please feel free to come back to TurboTax Community with additional information or questions or click here for help in contacting Turbo Tax Support. 

[MQ7]

Linda,  Thank you very much for your reply.  I get that I should keep this W2 for my records and in the Turbo Tax software when it asks if you have another W2 then I should say NO and proceed.  However, I was going to add the Box 14 fringe benefits cost in the grant money income and report that in additional income or Misc income area.  But I am confused by your one sentence in the reply.  The sentence that you wrote: "In general, the information that your employer lists in Box 14 of your W-2 does not have any affect your income tax return."  I have a question:  The box 14 includes the cost of fringe benefits provided by the University such as insurance etc., - are you saying that it is not taxable and should not be included in the grant money income?  The pay stub however, shows that it is taxable.  Please clarify. Thank you in advance.

[LindaS5247]

No, I did not mean it should not be included in the grant money income.  I don't have many details about your tax return (we can't see your tax return) or your overall situation so I was making a general statement.

In most cases, the information that your employer lists in Box 14 of your W-2 does not affect your income tax return.   

TurboTax uses the codes and descriptors from Box 14 to determine taxability and where it goes on your tax return.

There may be something reported in Box 14 that is taxable. It's just not common.  

You should be accounting for this taxable item that is in Box 14 (and any item in box 14 that is taxable) on your tax return.

You could try entering a $1 in Box 1 of your W-2 and entering your W-2 as it is shown to see what happens.

But as mentioned above, I cannot see your tax return or documents and I don't know all of your details. 

Click here for "What is Box 14 on my W-2?"

Please feel free to come back to TurboTax Community with additional information or questions or click here for help in contacting Turbo Tax Support. 

[MQ7]

Linda,

Thank you for quick response.  Here are some details.

The box 14 of the blank W2 from a university includes 4 items as fringe benefits: 1) Medical ins premium, 2) Life ins premium, 3) ADD ins premium, 4) School bus pass.  The items 2) and 3) are combined as one amount.  I believe, based on IRS employee compensation rules these non-cash benefits are non-taxable.

Also, using your suggestion, in Turbo tax software, I added this W2 and I entered a $1 in box 1 for wages, and entered all the box 14 entries as in the W2.  The Turbo tax processed the federal and state taxes and it did not make any difference in the tax liability.

To confirm further, I checked the W2 of the same university from last year.  Last year, I had the research grant salary like this year, plus I also had a small award which was considered as wages.  So, for the award considered as wages, I was given a regular W2 with minor income in box 1 ($2000).  But the box 14 of this award wages W2 had the same 4 items as this year's blank W2 (blank because no wages).  It included all the fringe benefits that were listed on the pay stubs of the research grant salary that I got last year.  The numbers were bigger because last year the research grant was for the full calendar year ( this year the research grant was for 6 months only).  I had used the Turbo tax last year also ( used for 27 years now!).  I checked the "All calculations file" from last year, it did document all the box 14 entries, however, it did not affect any tax liability.  So, it proves that items in box 14 are not taxable ( at least by Turbo tax software) and also nontaxable according to IRS because  they are non-cash and employee enticement or help attract employees, etc etc. 

So, the bottom line is : the amounts in this year's blank W2 box 14 are not taxable and they should not be included in the income from the grant money.  So what do you think?  Am I reasonable in my analysis of the issue?

Thank you for you help and support from the Turbo Tax community service.  Waiting for your response.

[AmyC]

Yes, you are correct. If your fringe benefits were taxable, they would be in box 1. Box 14 items are usually informational. While some may have an affect,  none of your items are tax related and don't need to be reported.

Officially, the IRS page 12 states: Fringe benefits. Include all taxable fringe benefits in box 1 of Form W-2 as wages, tips, and other compensation

page 24 states:

Box 14—Other. If you included 100% of a vehicle's annual lease value in the employee's income, it must also be reported here or on a separate statement to your employee. You may also use this box for any other information that you want to give to your employee. Label each item. Examples include state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income, educational assistance payments, or a minister's parsonage allowance and utilities. In addition, you may enter the following contributions to a pension plan: (a) nonelective employer contributions made on behalf of an employee, (b) voluntary after-tax contributions (but not designated Roth contributions) that are deducted from an employee's pay, (c) required employee contributions, and (d) employer matching contributions. If you are reporting prior year contributions under USERRA, you may report in box 14 make-up amounts for nonelective employer contributions, voluntary after-tax contributions, required employee contributions, and employer matching contributions. Report such amounts separately for each year. Railroad employers, see Railroad employers for amounts reportable in box 14.

[MQ7]

AmyC,

Thank you very much for your analytical reply.  I appreciate you concurring with my analysis that the 4 items in my blank W2 from the university are not taxable items.  I also appreciated the IRS reference you cited.  Excellent analytical approach!  There is only one glitch still left.  The university monthly pay stubs list the 4 items under "Taxable Fringe Benefits," and 3 Ins items (Medical, Life, ADD) are listed under "University Contributions/Other."  This is very puzzling.  Based upon my taxable income and W2 research, I think that the university doesn't handle the grant researchers' pay stubs and W2 documentation properly.  They don't provide a W2 for the research grant salary but emphasize that salary from research grant money is taxable and encourages to file taxes etc.  But to file taxes we must have good and accurate documentation.  This is the reason I have spent many evenings searching and googling for accurate and authentic answers.

The bottom line:  As you (AmyC) stated in your well analyze response, I believe all the 4 items in the Box 14 of the blank W2 from the university are non-taxable and should not be added to the research grant money income reported on the tax forms.

I would greatly appreciate a response on the issue/dilemma created by the university monthly pay stub disparity and in effect an erroneous categorization of the 4 items of the Box 14 of the blank W2 as taxable fringe benefits on the monthly pay stubs!

Again, Thank you AmyC et al who have shown a light of guidance on this issue.  Waiting for the response to this post.

[RobertB4444]

The University has a reason for putting those items into box 14.  That reason is probably "it saves the University money" but they have a reason.  There aren't going to be any definitive answers here.  All we can do is make our best educated guess.  You need to talk to the University's HR department and find out why those items are reported the way that they are and whether you can get any further documentation issued to deal with them.

@MQ7