Hello,
I am trying to generate my W-2 on Intuit ( S-corp, sole owner and unique employee).
My wage for 2024 was 39,000. I made a pre tax 401K employee contribution of 30,500 as it is the maximum I can do (over 50 yo). Box 12a D is thus 30,500. I put 39,000-30,500=8,500 in box 1; then 39,000 in boxes 3 and 5. I also had 25% federal income tax withheld, which is 39,000x25%=9750 in box 2.
Because the withheld tax in box 2 is higher than what is in box 1, Intuit issues an error message 'Form W-2 Worksheet: Box 2 is too large' and won't build my W-2. I guess I will withhold less next year, but what is the workaround so that I can actually generate a W2?
The problem is that having $9,750 withheld for taxes leaves only $29,250 of the original $39,000 available to fund the 401(k) elective deferral. Deferring $30,500 would imply that the business paid you $39,750 that was split between the tax withholding and the elective deferral.
In TurboTax Business, you can proceed past this error by selecting Done on the Run Error Check Again screen. This should advance you to the File screen where you will be able to generate your forms.
The problem is that having $9,750 withheld for taxes leaves only $29,250 of the original $39,000 available to fund the 401(k) elective deferral. Deferring $30,500 would imply that the business paid you $39,750 that was split between the tax withholding and the elective deferral.
Than you all for the help. Since 1120S is not files yet I will decrease my dividends and increase my wages to cover for the tax witholding, elective deferral and medicare/SS taxes. I did the max 401k elective late in the year and after all the witholding which is why I was in this situation. Will do better next year! For now I need to correct my wages in 940,941,RT8, pay a little extra medicare/SS taxes.
Thanks again.