Smart Check issue - Misflagging of W-2 Box 14 entries

[tjpeluso1]

I have two entries in Box 14 of my federal W-2 every year to report pre-tax deductions for my health care plans, and I've always categorized them the same way every year (one is unclassified and the other is a Code V). When finalizing my federal return this year, Smart Check flagged both of these entries and based on the description (see attached photo) seems to be mischaracterizing them as being related to a state retirement program (again, I am a federal employee). Should I just ignore this error and continue with my returns the way I normally would, or should I wait for action to be taken on this?

[DMarkM1 · Accepted solution]

Try this.  Go back to the W2 form entry and delete the word "Pretax" from your box 14 descriptions.  

[tjpeluso1]

Weirdly, that fixes the problem. Not sure why the word "pretax" would trigger something like that, but I've always entered it that way to match how the codes are described on the back of my W-2. I did go back to my filed documents from last year and it looks like only the state return uses the descriptions, so hopefully this doesn't create any issues after filing!

[AmyC]

Box 14 is for state and local entries or other things your employer wants you to know. 

General Instructions for Forms W-2 and W-3 (Including Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, W-2c,... states:

You may also use this box for any other information that you want to give to your employee. Label each item. Examples include state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income, educational assistance payments, or a minister's parsonage allowance and utilities. In addition, you may enter the following contributions to a pension plan: (a) nonelective employer contributions made on behalf of an employee, (b) voluntary after-tax contributions (but not designated Roth TIP contributions) that are deducted from an employee's pay, (c) required employee contributions, and (d) employer matching contributions.