Form W-2

[Willie52]

There is a form error in TurboTax Premier 2023 desktop version on Form W-2.  The amount in Box 11 Non-qualified plans is correct and matches the amount in Box 11 distributions from Section 457, but the error states the amount in the State Allocation (11b) does not match.  The state ID (11a) is correct and the amount is the same as the other two amounts in box 11.  All three amounts were  automatically posted on the form when I entered the W-2 information through EasyStep.  

The W-2 includes both non-statutory stock plan and non-qualified plan income.

[Willie52]

The extra fields in Box 11 for the Sec. 457 and non-qualified plans State Allocation were not included in last year's TurboTax Premier desktop version for Macs. 

[LeticiaF1]

If you are still getting an error, it would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information. 

If you would like to do this, here are the instructions: Go to the black panel on the left side of your program and select Tax Tools.

• Then select Tools below Tax Tools.
• A window will pop up that says Tools Center.
• On this screen, select Share my file with Agent.
• You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
• Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

Here are the instructions if you are using TurboTax CD/Download:

• Click on Online in the top left menu of TurboTax CD/Download for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number then place it in this issue.
• We can then review your exact scenario for a solution.
• Please also tell us any states included in the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

[Willie52]

I am using the desktop version, so there is no tools menu on the left.  I am attaching a photo of box 11.  Here is the error message at the bottom of the form:

"From W-2 (xxx): Nonqualified Distribution (State Amount) - The total amount of Sect. 457 state distributions does not match with the amount of Sect. 457 distributions reported on the federal return.  Adjust the state entries as need."  

As I wrote in the original posting, TurboTax automatically populated the fields in box 11.  You will see in the photo the amounts match.

[BillM223]

Re: diagnostic file,

Leticia gave you the instructions for how to do this for the desktop version of the product:

"Here are the instructions if you are using TurboTax CD/Download:

• Click on Online in the top left menu of TurboTax CD/Download for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number then place it in this issue.
• We can then review your exact scenario for a solution.
• Please also tell us any states included in the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution."

When you create the diagnostic file, be sure to post a response in this thread and include "@" "LeticiaF1" (without the quotes or the space in between) so that she will be notified.

[Willie52]

I am not using Windows.  I am on an iMac using macOS Ventura Version 13.6.3.

[Willie52]

After some additional testing, I'm pretty sure I have determined what is causing the error.  After entering the W-2 through EasyStep,  on Form W-2 in Box 1, I have an amount that ends in 55 cents.  That total amount gets divided into two amounts: Box 3 contains an amount that ends in 70 cents and Box 11 contains an amount the ends in 85 cents.  When it transfers the amount in Box 3 to Form 1040 line 1a, the amount is rounded up.  When it transfers the amount in Box 11 to Schedule 1 line 8t, it rounds that amount up as well.  If I go back to Form W-2 and round up both the second amount (Distributions from sect. 457 and nonqualified plans) and third amount ((cont) Sect. 457 and nonqualified plans State Allocation) in Box 11, the error goes away even though these amounts no longer match the unrounded amount in the first field of Box 11 (Nonqualified plans).

I suspect there is a rounding issue somewhere in the software.

[DaveinCharlotte1]

There is a separate ongoing discussion about this issue, titled "W-2 Box 11 Glitch?" by JCC457 which can be found by clicking on the "W2" button.  (Not sure why Willy52's post does not show up there.)  In that thread over a half-dozen users across as many states have reported this same issue.

Willy52, your "rounding error" solution gave me some encouragement, but alas when I tried entering only round numbers (no cents) I still get the error message.

BillM223, in that thread you said you were attempting to reproduce this problem.  Any progress yet?

[Willie52]

Once I entered the rounded amount of Form W-2 Box 11 into the second field,  TurboTax automatically updated the the State Allocation amount to the same amount and showed no error.  In fact, I can put any whole dollar amount in the second field and TurboTax will match that amount in the third field of Box 11 with no error.  It seems that should be incorrect.  If I add any amount in those two boxes with cents included, I get an error.

[AnnetteB6]

The situation you described regarding an error flagging state distributions from a 457 account is a known customer experience that is being addressed by the TurboTax development team.  It is expected to be resolved after 2/2/2024.  

@Willie52 

@DaveinCharlotte1 

[Willie52]

The update I applied this morning to my Mac desktop version of Premier appears to have corrected the software error.  I was able to enter all three amounts in W-s Box 11 with cents included without encountering an error.

[Willie52]

W-2 Box 11

[PADenny]

I am having a somewhat related issue.  I have been using TurboTax for many years and this is the first year that I am receiving an error message regarding a W-2 for monthly payments received from a nonqualified pension plan.  The W-2 contains exactly the same information for 2023 as in past years.  The payments are taxable for Federal purposes, but not for Pennsylvania (where I reside).  The W-2 contains "PA" and the employer number in Box 15, and $0.00 in both Boxes 16 and 17.

I am receiving a Smart Check error message stating:

"Form W-2 (XYZ Corp.): Nonqualified Distribution (State ID) does not match with any states entered in Box 15.

Nonqualified Dist (St ID)    PA"

 I have tried not entering anything in boxes 15 - 17 in TurboTax; entering information in box 15 but leaving boxes 16 and 17 empty; and entering the information in all 3 boxes (15 - 17) in TurboTax.  The error message was received under all 3 of these approaches.

Thoughts on how to address this error message?

[PADenny]

I am having a somewhat related issue.  I have been using TurboTax for many years and this is the first year that I am receiving an error message regarding a W-2 for monthly payments received from a nonqualified pension plan.  The W-2 contains exactly the same information for 2023 as in past years.  The payments are taxable for Federal purposes, but not for Pennsylvania (where I reside).  The W-2 contains "PA" and the employer number in Box 15, and $0.00 in both Boxes 16 and 17.

I am receiving a Smart Check error message stating:

"Form W-2 (XYZ Corp.): Nonqualified Distribution (State ID) does not match with any states entered in Box 15.

Nonqualified Dist (St ID)    PA"

 I have tried not entering anything in boxes 15 - 17 in TurboTax; entering information in box 15 but leaving boxes 16 and 17 empty; and entering the information in all 3 boxes (15 - 17) in TurboTax.  The error message was received under all 3 of these approaches.

Is this issue also being addressed by TurboTax?

[MonikaK1]

From your description (assuming it says Nonqualified Dist not Diet), it appears that the error may have to do with the fact that you have a State ID and employer ID on the W-2, but no state wages or state tax withheld, or that the format of the State ID is not as expected for that State. If you see the error in Review, the program will normally provide a screen with the error highlighted and ask for an action to correct it.

You might also try going back to the W-2 interview to see whether the answer to a particular question about the W-2 caused the error, or if the State employer ID number was entered correctly. In the alternative, if there are no state wages or stage withholding, try deleting the Box 15 entries altogether, or deleting the entire W-2 and reentering it without Box 15.