Golden Parachute payments

[JDMonzon]

From comments on this subject from previous years, it seems Turbo tax has been aware of the Golden Parachute payments added in the return. Why has not been corrected? After filing my 2024 tax return I found out Turbo Tax automatically included in Schedule 2 a $1566 additional tax which is the same amount on my wife's W2 for Pretax Vision and Dental deductions that is code K in block 14.  Turbo Tax product support and Live Chat expert were not helpful and evasive also rude to me asking for guidance and explanation. Again why has this problem not been corrected? I don't think I will use Turbo Tax again after paying a lot of money to them!!!

[Vanessa A]

Are you talking about box 12 or box 14 on the W-2?

Box 14 has more to do with state and local but it does not have a code K.  it generally has no affect on your federal return. 

Box 12 code K is 20% excise tax on excess golden parachute payments per IRS instructions. 

Code K—20% excise tax on excess golden parachute payments (not applicable to Forms W-2AS, W-2CM, W-2GU, or W-2VI). If you made excess golden parachute payments to certain key corporate employees, report the 20% excise tax on these payments. If the excess payments are considered to be wages, report the 20% excise tax withheld as income tax withheld in box 2