K is for the pre-tax dental and vision insurance deduction amount. This is the amount you had withheld during the year to pay for your dental and vision coverage. It is a reporting number only on the W2 itself and not used in calculating taxable wages. The amount reported with a code K has already reduced the taxable income you have reported in box 1 taxable wages of the W2 form, so you should not be using this amount as a part of your qualifying medical expenses for the tax year (if you are itemizing deductions).
Box 14 Letter K should be dental and eye vision coverage that was deducted from my W-2 income, but instead Turbo Tax's letter K is calculating a 20% Golden Parachute Penalty. Can someone tell me why or can someone change the program to make it calculate or deduct the right figures on the correct forms?
K is for the pre-tax dental and vision insurance deduction amount. This is the amount you had withheld during the year to pay for your dental and vision coverage. It is a reporting number only on the W2 itself and not used in calculating taxable wages. The amount reported with a code K has already reduced the taxable income you have reported in box 1 taxable wages of the W2 form, so you should not be using this amount as a part of your qualifying medical expenses for the tax year (if you are itemizing deductions).
IF YOU ENTERED LETTER "K" ON BOX 12, IT WILL COMPUTE THE 20% EXCISE TAX PARACHUTE, SO ENTER "K" ON BOX 14 AND THE AMOUNT WILL BE RECORDED AS TAXES PAID TO INCREASE REFUND OR DECREASE AMOUNT DUE.
Be very careful when uploading your W2 and reviewing your final return. TurboTax put the Letter K amount from box 14 on my W2 in Box 12 on their online form and it nearly took over $500 off my refund.
Thank you, thank You. My Federal owed went down $2000 when I removed that.
Use the Other (not classified) category if you are unsure what category to use for an item in Box 14 - @grantcd04
14K is the pre-tax amount withheld for dental and vision insurance. TurboTax entered "K" in box 12 which calculates the 20% golden parachute (Golden parachutes are lucrative severance packages inked into the contracts of top executives) tax. I also sent an amendment to IRS because I noticed it also on my 2022 tax form so I should be receiving a refund with interest. @DawnC Thank you for the advice.