I contributed to a deferred salary plan. I am now retired and withdrawing from this plan. I have a separate W2 for this plan income. The amount of the withdrawal is shown in box 11 of W2 and is exactly the same as the total income in box 1. I cannot pass the easy step process by saying that it is a withdrawal as it always generates an error.
I have no state information on my W2 because I reside outside US. When I answer "yes it's a withdrawal" it tells me that the value doesn't match the state information. That is true and it's correct because I have no state info on my W2. The only way to pass this easy step question is to incorrectly enter that it was a contribution.
In the Forms version of the W2 there are extra fields for box 11 State Allocation (state ID and Amount of Distribution). These are not applicable. I earned the salary in OH but no longer reside there. I can't manually enter the data for OH either as it goes red. If I leave these extra fields blank in the W2 what is the effect? Last year I had exactly the same situation but no error.
Replying to my own question
Here is the solution. First it is important to enter the amount as a distribution because this moves the income to Sch 1 Line 8t and out of the 1040. No effect on the calculation but this is what the IRS wants.
So in the Forms view you can enter FC for the state code and the amount, this works fine and eliminates the error.
You can also select Foreign Country or US possession from the state dropdown in the Easystep view (last option below all the states). I did not know this was there, I put in in the Forms view as FC and then retried the Easystep and that is when I saw it.
Hope this helps someone.
Replying to my own question
Here is the solution. First it is important to enter the amount as a distribution because this moves the income to Sch 1 Line 8t and out of the 1040. No effect on the calculation but this is what the IRS wants.
So in the Forms view you can enter FC for the state code and the amount, this works fine and eliminates the error.
You can also select Foreign Country or US possession from the state dropdown in the Easystep view (last option below all the states). I did not know this was there, I put in in the Forms view as FC and then retried the Easystep and that is when I saw it.
Hope this helps someone.
I have the same issue. No state info on my W-2 but I live in US. Won't allow me to enter as a distribution since it won't accept state info. The W-2 is same as last year with no state info and it worked fine. Only works when I select this is a contribution and the amount shows as Wages on 1040.
I have same problem as this - residing in SC, but selecting SC generates error. My 2023 W-2 has same blocks as 2022 W-2 and there was no problem. I am stuck. Please help.
If boxes 1 and 11 are the same - the entire w-2 is a nonqualified distribution, you need to enter SC info on the w-2 in box 15 >> enter SC and the payer ID number, then enter the amount in box 16. Amounts in Box 11 will go to Line 1t of Schedule 1 - - not to wages. @KW50k The other alternative is to leave boxes 15-16 blank and enter FC when asked for the state code for the distribution in box 11.