2024 Return - Issue with how Turbo Tax handles Line 12b with Code DD

[TallTexan]

I've already spoken with a Turbo Tax agent and he suggested there may be an issue with Turbo Tax in how it is processing the Line 12b with Code "DD". Per online resources this is a non-taxable number and for information only. However, TurboTax treated this amount as unpaid taxable income and caused me to have to pay the IRS additional taxes. Unfortunately, I already hit submit so now I am stuck in the que of waiting for them to process everything. I started to think about the issue because for years I have always received a refund and while I had a small increase in wages, it did not make sense that I would go from a large return to having to pay within one year cycle. 

I am bringing this to the community so they are aware there may be a bug in the formula. 

[BillM223]

I assume you kept a copy of your return. Please look your 1040 and Schedules 1, 2, and 3. Does the amount marked by code DD on your W-2 show up any place on these forms?

You said that TurboTax treated this as taxable income. On what form and line does it appear? This will help us get to the root of the issue.

[TallTexan]

Hello: 

On my 1040 the amount shows up on line 13 under Part II Other Taxes as the full amount that was on the W2 marked in box 12b as DD.  It also appears of course on line 21 of Part II. 

[VolvoGirl]

I haven’t seen anyone else reporting this.   Are you sure you picked code DD and didn’t accidentally get another code like maybe B because it is on line 12b?  

[TallTexan]

I know I selected DD. But, I can't verify that as it won't let me back in since I hit submit. It is possible I fudged it with the mouse after selecting.

[David110]

I am experiencing the exact same issue. I have a W2 with $0 in line 1, and Line 12b has Code DD. This is exactly what I had last year, but this year it is saying I cannot file electronically because I have $0 in line 1.

Something is wrong with the checks and balances this year. There is no reason I should have to print and manually send my Federal and State taxes.

Help?!?

[David110]

I am having the exact same issue with Line 12b as Code DD, Line 1 with $0, and TurboTax Premier is saying I can't file electronically ... but I have had the same circumstance for the past 4-5 years (always submitting electronically).

[David110]

Another piece of info. I had gone through my review about a month ago, and had no errors. I wasn't confident I had all the paperwork, so waited until today (3/1/25). I went back in and reviewed Tax History, etc, then ran the review again. Oh No! I cannot submit electronically now. Something changed?!? Using desktop TurboTax Premier. 

[MonikaK1]

If there is no other information on this W-2 besides the amount and code in Box 12, you don't have to report it at all. You can delete the W-2 from TurboTax and keep the information with your records.

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD.

Many employers are eligible for transition relief for tax year 2012 and beyond, until the IRS issues final guidance for this reporting requirement.

Individuals (employees) do not have to report the cost of coverage under an employer-sponsored group health plan that may be shown on their Form W-2, Wage and Tax Statement, in Box 12, using Code DD.

The amount reported does not affect tax liability, as the value of the employer contribution continues to be excludible from an employee’s income and is not taxable. This reporting is for informational purposes only, to show employees the value of their health care benefits.

See this IRS webpage for more information.

@David110