What does code K in box 14 in a W2 refer to?

[Sarcochilus]

This is from a federal employee's W2

[Ann4000]

Box 14 Letter K should be dental and eye vision coverage that was deducted from my W-2 income, but instead Turbo Tax's letter K is calculating a 20% Golden Parachute Penalty. Can someone tell me why or can someone change the program to make it calculate or deduct the right figures on the correct forms?

[mathteachingmom · Accepted solution]

K is for the pre-tax dental and vision insurance deduction amount.  This is the amount you had withheld during the year to pay for your dental and vision coverage.  It is a reporting number only on the W2 itself and not used in calculating taxable wages.  The amount reported with a code K has already reduced the taxable income you have reported in box 1 taxable wages of the W2 form, so you should not be using this amount as a part of your qualifying medical expenses for the tax year (if you are itemizing deductions).

[newtampabiker]

I am having the same issue in 2016

[emperaej]

IF YOU ENTERED LETTER "K" ON BOX 12, IT WILL COMPUTE THE 20% EXCISE TAX PARACHUTE, SO ENTER "K" ON BOX 14 AND THE AMOUNT WILL BE RECORDED AS TAXES PAID TO INCREASE REFUND  OR DECREASE AMOUNT DUE.  

[creatch]

Be very careful when uploading your W2 and reviewing your final return.  TurboTax put the Letter K amount from box 14 on my W2 in Box 12 on their online form and it nearly took over $500 off my refund.   

[grantcd04]

Thank you, thank You.   My Federal owed went down $2000 when I removed that.

[DawnC]

Use the Other (not classified) category if you are unsure what category to use for an item in Box 14 - @grantcd04 

[grantcd04]

14K is the pre-tax amount withheld for dental and vision insurance. TurboTax entered "K" in box 12 which calculates the 20% golden parachute (Golden parachutes are lucrative severance packages inked into the contracts of top executives)   tax.   I also sent an amendment to IRS because I noticed it also on my 2022 tax form so I should be receiving a refund with interest.    @DawnC  Thank you for the advice.