Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 1, 2019 10:32:05 AM

I cannot enter a code Z on a w2 form I received and complete my taxes

0 5 1705
5 Replies
Level 3
Jun 1, 2019 10:32:06 AM

Apparently Turbo Tax doesn't support that code.

This, from within the program:

W-2  Box 12 code Z is income under section 409A on a nonqualified deferred compensation plan. This is unusual and the calculations for the additional tax and interest on this are not supported.

If you do not have this code on your W-2, remove it by selecting No code in the drop down list below.

New Member
Mar 13, 2020 12:46:29 PM

I changed the "Z" to "no entry" and the recalculation did not change  the federal tax due.  Why ??

Expert Alumni
Mar 13, 2020 1:41:40 PM

Code Z in box 12 is income from a 409A on a nonqualified deferred compensation plan. This is money that is deferred from your income and invested in a plan that is non-qualified, that is a plan that doesn't meet the rules to be tax deferred like a 401(k) plan. 

 

The deferred amount is still taxable and doesn't qualify you for any deductions or credits, so it doesn't affect the amount of your taxes. 

New Member
Apr 15, 2023 9:37:52 AM

I can’t complete my federal form because TurboTax is not accepting this. 

Intuit Alumni
Apr 15, 2023 9:56:31 AM

You are commenting on an older thread that may have outdated information.  

 

Please post your exact issue here in the thread along with the version of TurboTax you are using, and we would be happy to assist you further.  

 

@Kelseyarmrong