If your spouse is a teacher who pays into a teacher retirement system instead of into Social Security then there are a few boxes that will be blank on her W-2--including box 3. Do not put in a zero. The software does not like zeros. Leave it blank.
Teachers and Social Security
There are 15 states (AK, CA, CO, CT, IL, LA, MA, ME, MO, NV, OH, TX) in which teachers do not pay in to Social Security, so you will not see Social Security withheld on the teacher’s W-2. Instead, teachers in those states pay in to a Teacher’s Retirement System, which will show up elsewhere on the W-2 often in box 12 or box 14.
There are three states which have varying degrees of participation in SS for teachers, depending on school districts—GA, KY, and RI.
Why Does Social Security Leave Out Teachers in These 15 States?
Some state government employees, including teachers, don't pay Social Security payroll taxes and aren't entitled to retirement benefits from Social Security. The history of this practice dates all the way back to Social Security's formation, when the law was intended to cover only private employees. At the time, it wasn't clear whether the federal government could force states to pay payroll taxes. Only in the 1950s did the rules change, allowing states to have the ability to join Social Security.
The majority of states elected to enroll their government workers in Social Security. At that point, those workers started paying payroll taxes, and they earned their retirement benefits in the same way as any other worker.
However, not every state participated. Now teachers in 12 states -- Alaska, California, Colorado, Connecticut, Illinois, Louisiana, Maine, Massachusetts, Missouri, Nevada, Ohio, and Texas -- don't have coverage arrangements with Social Security. In addition, three other states -- Georgia, Kentucky, and Rhode Island -- have varying degrees of coverage that differ by school district.
enter zero or else one dollar. It is Box 4 that matters.
@zayhee If leaving box 3 blank does not keep the software happy, then try fanfare's idea of entering $1. It will have no effect on your tax due or refund. You just need to keep the software happy for that box so that you can move on.
@zayhee Let us know what works.....so we will be ready for the next user with this issue!