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It sounds like a box 14 code K entry, which is informational only, has been entered as a box 12 code K for excess parachute payments. Revisit the W2 topic and verify the box 12 and box 14 entries.
The category for a box 14 code K is "Other (not classified)" and does not affect the tax calculations.
This error was not identified until 1040 was submitted. Will this error affect the amount that is due for taxes and how do I reconcile this with IRS. I appreciate your advice.
If your tax return was already submitted and accepted, you will need to amend your tax return.
If you had a balance due, that is not yet paid, you can pay the amount due after your amendment, but before April 18. If this is the case, you need to answer that the original amount is not yet paid when you do your amendment.
You should wait until after you receive your refund, or if there is an amount due, three weeks after your return was accepted.
When you are ready to amend, if you used TurboTax Online:
If you used our CD/download product:
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