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mt5332
New Member

I need to enter a negative amount om line 21 to deduct workman compensation wages that were included on my w-2

I need to deduct the non taxable wages but they are reported in box 1 on the w-2
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2 Replies
MichaelDC
New Member

I need to enter a negative amount om line 21 to deduct workman compensation wages that were included on my w-2

It's best for your employer to supply a letter with the correct information so you'll know the exact dollar amount. Then you can state you change your W2 according to IRS TR-32-153-91. I would attach that with your return. TR 32-153-91 is an agreement with the IRS that excludable compensation is the same as workmen's comp.

In TurboTax 2016, enter your income as received either on a W-2 or 1099-MISC, then offset it by taking these steps:

1.    Federal Taxes tab (left of screen)

2.    Then Wages & Income

3.    Pick, “I’ll choose what I work on” Button

4.    Scroll down to Less Common Income

5.    Pick start next to Misc Income, 1099-A, 1099-C

6.    On the next screen choose other reportable income (at the bottom)

7.    Say yes that you have other taxable income.

8.    For description enter "per TR 32-153-91" Enter the amount of the income with a minus sign (-) in front of it.

This effectively removes your income from the tax calculations and will appear on line 21 of your Federal Form 1040 as a negative dollar amount.




jfmctlaw
Returning Member

I need to enter a negative amount om line 21 to deduct workman compensation wages that were included on my w-2

This advice worked great on my 2022 tax return.  Thank you.

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