2024 Return - Issue with how Turbo Tax handles Line 12b with Code DD

Forum|Forum|1 year ago
January 28, 2025
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I've already spoken with a Turbo Tax agent and he suggested there may be an issue with Turbo Tax in how it is processing the Line 12b with Code "DD". Per online resources this is a non-taxable number and for information only. However, TurboTax treated this amount as unpaid taxable income and caused me to have to pay the IRS additional taxes. Unfortunately, I already hit submit so now I am stuck in the que of waiting for them to process everything. I started to think about the issue because for years I have always received a refund and while I had a small increase in wages, it did not make sense that I would go from a large return to having to pay within one year cycle.

I am bringing this to the community so they are aware there may be a bug in the formula.

TurboTax Deluxe Online

BillM223

I assume you kept a copy of your return. Please look your 1040 and Schedules 1, 2, and 3. Does the amount marked by code DD on your W-2 show up any place on these forms?

You said that TurboTax treated this as taxable income. On what form and line does it appear? This will help us get to the root of the issue.

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TallTexanAuthor

Hello:

On my 1040 the amount shows up on line 13 under Part II Other Taxes as the full amount that was on the W2 marked in box 12b as DD. It also appears of course on line 21 of Part II.

VolvoGirl

Employee

I haven’t seen anyone else reporting this. Are you sure you picked code DD and didn’t accidentally get another code like maybe B because it is on line 12b?

lowrent

This just happened to me. Both 12a Code D and 12b Code DD were added to my owed taxes. Now I'm not sure what to do.

KeshaH

Did you confirm that the W-2 that was entered in TurboTax has those same codes?

@lowrent

lowrent

Yes. Of course, conveiniently I could not see the worksheets until I had submitted my return. Now I need to figure out how to get back $17K, any hints here?