uncollected social security and medicare taxes on Horizon bFit reward

[Audrey15]

I am using Turbotax to prepare this year's taxes and have run into a problem. My employer sent me a separate form W-2 specifically for a Horizon bFit reward payment (my health insurance company pays a small reward each month for walking so many steps per month) where Box 14 of the W-2 shows uncollected social security and medicare taxes. The employer's W-2 instructions indicate I am supposed to put the uncollected taxes on line 62 of Form 1040 with a note of UT on the dotted line next to line 62; however, line 62 does not appear to exist. I entered this W-2 into Turbotax but don't see any way to include in Turbotax an indication that any taxes were uncollected. I thought about somehow using Form 8919 but I am not sure how to get Turbotax to use that form and none of the reason codes apply to my situation.  How do I get the necessary information into my 2023 tax return?

[DianeW777 · Accepted solution]

Yes, here is how you should enter your W-2 for the correct uncollected social security and medicare taxes to be paid on your tax return.  it's not technically 'Group Term Life' insurance, however it will provide the correct results for your return.  Line 62 no longer exists and it should show up on Schedule 2, Line 13.  

Use Box 12 in the W-2 entry:

M—Uncollected social security or RRTA tax on taxable cost of group term life insurance over $50,000 (former employees only). The tax is being calculated and entered on the appropriate line of Form 1040/1040-SR.

N—Uncollected Medicare tax on taxable cost of group term life insurance over $50,000 (former employees only). 

These taxes will show up on Schedule 2, line 8, then transferred to Form 1040/1040-SR.

Keep your documents on file should you need then later, but this is absolutely fine to take care of this type of payment that is required for you. The key is to have the taxes paid with your return.