Why does box 12 letter K say 20% excise tax-golden parachute instead of dental/vision coverage?

Forum|Forum|3 years ago
March 19, 2023
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TurboTax Self Employed Online

Best answer by JulieS

Yes, Code K in box 12 of your W-2 form means 20% excise tax on excess golden parachute payments. If you have that on your W-2 form and it does not apply to you, contact your employer to get it corrected.

If your copy of your W-2 form doesn't have code K in box12, but you are seeing it in your tax return, you need to correct the W-2 in the program. This is how to do that:

Select Federal on the left side menu.
Select Wages & Income toward upper left.
Click Edit to the right of Job (W2).
Click Edit to the right of your W2 entry.
Click Continue.
Make your corrections to box 12 on this page.

JulieSAnswer

If your copy of your W-2 form doesn't have code K in box12, but you are seeing it in your tax return, you need to correct the W-2 in the program. This is how to do that:

Select Federal on the left side menu.
Select Wages & Income toward upper left.
Click Edit to the right of Job (W2).
Click Edit to the right of your W2 entry.
Click Continue.
Make your corrections to box 12 on this page.

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JohnVA2025

TurboTax seems to have an error when importing a w-2 via a photo and a code K is shown on the w-2 in box 14 (pretax dental and vision deduction). It imports the K into box 12 and calls it a "golden parachute" amount which becomes taxable. W-2 (DFAS federal employee) states code K is not used in box 12 (along with several other codes). Had to manually correct Turbotax by removing K from box 12 after photo W-2 import. Is this the correct thing to do?????