Is it possible to file excludable compensation with TurboTax?

[ednaumoff]

I’m a police officer and was injured on duty and was placed on non working status , while recovering I still was paid regular salary with all taxes being deducted. At the end of this year I received a form from the department with amount of days I spent along with gross amount and the amount that excludable from taxes. I’m using TurboTax and have no clue where and how to insert this info with my tax return I’m order to get credit. Or I need to see a tax person and file it via mail.

[MinhT]

If your W-2 includes the excludable amount, you can report the excludable amount as a negative income in TurboTax in Other Reportable income.

In TurboTax, open your return and follow these steps:

• Click on Federal in the left-hand column, then on Wages and Income on top of the screen
• Scroll down to All Income, locate the Less Common Income section
• Click Show more and click Start next to Miscellaneous Income at the bottom and click Show More
• On the next page, click Start next to Other Reportable Income
• On the next page, you describe the item and enter the excludable amount as a negative number..

[ednaumoff]

Is it possible to scan and attach the letter from the department as a proof and e file everything?

[MinhT]

You do not have to send the department's letter to the IRS. Just keep it in your tax records in case the IRS asks for it. You can e-file normally.

[Trini3]

Can we get an update on the instructions? This doesn't seem to function any longer.

[SharonD007]

If your W-2 includes an excludable amount of income, you can report the excludable amount as a negative income in TurboTax in Other Reportable income.  In TurboTax, open your return and follow these steps:

1. Select Federal in the left-hand column, then select Wages and Income 
2. Scroll down to Less Common Income section (It’s the last section)
3. It may prompt you to Show more and select Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C 
4. Scroll down and select Other reportable income
5. Select Yes to the question “Did you receive any other taxable income?”

The next screen says “Other Taxable Income” – Enter the description of the excludable income and enter the excludable amount as a negative number.

[KRS81]

Is there an update to this procedure, this no longer applies

[KRS81]

My apologies, I didn't enter the - (Negative) in front of my amount.