W-2c

You are required to pay the social security and medicare taxes on the group term life (GPT) insurance premiums paid by your employer.  You must enter the information on a W-2 form as follows.

 

 Your W-2 should include the following letters in Box 12. If they are not there then you should add them yourself. The dollar amount should equal 6.2% and 1.45% respectively times the amount in Boxes 3 and 5.

• M — Uncollected Social Security or RRTA tax on taxable cost of group-term life insurance over $50,000 (former employees only). Include this tax on Form 1040 Schedule 2, line 8, identify as “UT”.
• N — Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (former employees only). Include this tax on Form 1040 Schedule 2, line 8, identify as “UT”.

In my test I created your scenario and entered the information, as I described above, on the W-2. I also added $1 in Box 1, in the hopes that it will e-file for you. See the images below for assistance and you can Preview My 1040 after your entry.

 

For TurboTax Online use the steps below.

1. Open or continue your return.
2. With the Tax Tools menu open, you can then:
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu. (Scroll to Schedule 2)

Thank you Diane,

In my W-2c besides my previous (I am retired) employer's name, address and employer's Federal EIN, and also my SS#, my name, address and Tax year/Form corrected as: 2021 / W-2c,

I have only Box 12 filled with three fields / codes: C, M and N.

TurboTax doesn't allow me to e-file, because Box 1 in my W-2 (or W-2c) is empty.

You are suggesting me to add $1 in Box 1 and it will work from the technical perspective, allowing me to e-file my return which I prefer to do, instead of filing my return by mail. Adding $1 in Box 1 will not change anything and of course I am responsible to pay uncollected SS tax (code M) and uncollected Medicare tax (code N).

The question is, is it legal if I add $1 in Box 1 using TurboTax, though this Box 1 is empty on my paper W-2c?

Please advise.

Thanks.

Yes. That dollar is considered to be an immaterial amount by the IRS, since most calculated numbers are rounded to the nearest dollar anyway. Do this so you can e-file your return before the deadline.

Thank you Patricia. I appreciate your response.