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I got an Excess Salary Deferral. I want to file my tax return but I am unable to file due to a TT error. Do I update any information before paper filing?

I received a 2018 Excess Salary Deferral. I called my 401k provider and got the money back. However, when inputting the information in TurboTax, I receive an e-Filing error. TurboTax is aware of this and on 4/5, the software recommended to paper file because the error can't be fixed. However, I don't know if my numbers are wrong are not and don't want to file incorrectly. Anyone who faced this problem. when paper filing, did you have to update any numbers before sending the file?
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1 Reply
Rachel_W
Expert Alumni

I got an Excess Salary Deferral. I want to file my tax return but I am unable to file due to a TT error. Do I update any information before paper filing?

If you overcontributed to your 401(k) in 2018 and the excess was distributed in 2019, you need to include the excess contribution to your 401(K) on line 1 of your 2018 Form 1040 by following these steps: 
  • Login to your TurboTax Online Account
  • Click "Take Me to My Return"
  • Click "Federal" from the left side of your screen
  • Scroll down to "Less Common Income" and click "Show More"
  • Select "Miscellaneous Income" and click Start or Update
  • Select "Other income not already reported on a Form W-2 or Form 1099" and click on Start
  • Answer the Question "Did you receive any other wages?  Yes
  • Click "Continue" through the questions until you get to "Any Other Earned Income"
  • Answer "Yes" to "Did you earn any other wages?
  • Indicate "Other" as Source of Other Earned Income and click Continue
  • For the description enter "2018 Excess 401K Deferrals" and click on Done 

NOTE: It was just announced that an update is currently planned for April 12th, 2019 to resolve this e-filing issue. You may still see a warning about the excess contribution, but you should be able to e-file.  You can check out this   TurboTax FAQ for more information:  Excess 401(k) Contribution Preventing E-filing


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