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February 1, 2023
Question

Turbo Tax Deluxe 2022 1040 Schedule 1, line 8 error

  • February 1, 2023
  • 4 replies
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Attempting to do my taxes and the Federal and State reviews show no errors.  However when I tried to file electronically, I get the following reject message - "the sum of all form W-2's, 'WagesAmt' must not be greater than the sum of "wages, salaries, tips amount" when statutory employee form w2 is marked" - The return cannot be electronically filed due to a processing error related to other income items listed on 1040 schedule 1 line 8.  This issue will be resolved, but there is no estimated date for when it will be available.  Recommend waiting 2 weeks and check again or file by mail - 

 

Anyone else run into this?  My line schedule 1, line 8 amount is from a deferred comp payout - so it was reported on a W2 in box 1 wages, and then the same amount again in box 11 which is non qualified deferred comp.  That is correct...so am I correct in assuming Turbo Tax just doesnt have an update yet for this?  Debating giving it a couple of weeks or just filing by mail?  Seems if its as simple of an update to do, it wouldnt take too long?

    4 replies

    AliciaP1
    February 1, 2023

    The error you have mentioned means the "Statutory Employee" box is marked on your W-2 entry into TurboTax.  If your W-2 is only reporting deferred compensation, this box should not be checked.  You need to review your Form W-2 you received from your employer to ensure it is not checked then review your TurboTax entry of the form as well.  If your employer sent the Form W-2 with the box checked, you need to request a corrected form be sent to you.

     

    To review your Form W-2 entry in TurboTax Online and uncheck the box, you can follow these steps:

    1. Within your federal tax return in TurboTax Online go to Income & expenses
    2. Click Edit on the Job(W-2) line you need to change
    3. Verify or enter the W-2 until you get to Box 13 and uncheck the Statutory Employee box
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    gtsum2Author
    February 1, 2023

    Thank you for the reply.  That is what I thought as well from my limited research, but my W2 form does not have the statutory box marked and it is not marked in Turbo Tax either - which is why I am so confused:)

    February 1, 2023

    Unfortunately this is a known error on the IRS side of the equation.  They are working to fix it and anticipate having it repaired soon.  Try to file again after February 6th.

     

    @gtsum2

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    February 5, 2023

    I, too, found that my return was rejected when I had Box 11 Non-qualified pension (I don't remember the exact wording).   In my case, the W2 was for imputed income for life insurance plus the non-qualified pension plan.   You are correct... the boxes below 1 & 2 add up to the box 1 & 2 numbers.   The cause appears to arise from the question that you are asked after entering the W2 with a box 11 amount in it.   If you answer, "yes, this was a withdrawal of cash", it'll trigger leaving the box 11 amount from your 1040 wage line and add the box 11 to the schedule 1 (other income) line on the specific line for "non-qualfied pension".   This will be added to your income on page 1 of the 1040 under "other income".   Hence, you're taxed on everything but the box 11 under wages and the box 11 on other income.   On the other hand, if, after entering the W2 info into Turbo Tax, you click on the box "No, this was contributed..." (I don't  remember the wording), all of the taxable income (including line 11 non-qualified pension) shows up under wages.   Hence, you're paying tax on line 11 either way at the same rate.   One could argue that the first is probably "more correct", however, the end result is that you're paying the appropriate tax on the income from wherever.   When you check the no box, the electronic filing works.

     

    Just to clarify, go back to your federal input...go to inputting W2, click the edit (if you don't do this, you won't see the yes/no box to check).   Verify the info on the 2 screens, save the W2, it'll say "you're refund is Xxx" and then the next screen will have a question (I don't remember) and then the next screen is the question about the non-qualified income.

     

    Good luck.

    gtsum2Author
    February 7, 2023

    This worked...thank you.  

    February 20, 2023

    I was working in my unemployment income and turns out that the same amount appears  on other income Schedule 1, impacting negative my return. I can no find a way to edit it. any one knows?

    February 20, 2023

    Your unemployment benefits will be reported on a Form 1099-G but those are used for government payments and can be entered in different places in the return, depending on the reason for the payment.
     

    I suggest you delete any Form 1099-Gs in the return and then go back to enter it in the section for unemployment benefits. 

    To delete a duplicate form,  you can use Delete Forms

     

    1. In the left menu, select Tax Tools
    2. Select Tools
    3. Select Delete a form
    4. Scroll to the Form 1099G that is duplicated and click Delete on the right
    5. Repeat for any other Form 1099-Gs
    6. Then scroll to the bottom and select Continue with my return

    That will delete any duplications and you can now enter the unemployment benefits in the correct section.

     

    1. Return to Wages and Income, on the left
    2. Scroll down to Unemployment and click Show More
    3. Click on Start or Revisit for Unemployment and paid family leave

    If you still show duplicate income check the other sections of Wages and Income to see if any say Revisit, rather than Start.
     

    February 20, 2023

    It is weird. I deleted form Schedule 1 form. TurboTax said the form was successfully, but it was still there. then I deleted form 1099 G, and both 1099G and Schedule 1  were deleted. so far so good.

    When I reenter benefits from 1099G again Schedule 1 form appeared again too showing the same amount of my 1099G and adding this to my total income. but this amount doesn't appear in the income main screen.

    February 20, 2023

    You may attempt to delete Schedule 1 from the Federal 1040 tax return but many income and deduction items are reported on that form and require that the form be immediately re-generated.  This may be what you are seeing.

     

    Unemployment benefits will flow to line 8 of the Federal 1040 tax return through Schedule 1 line 7.

     

    Are you saying that Schedule 1 is reflecting a reversing entry of some kind?  Is this why you are not seeing the unemployment income reported at the Your Income screen?  Are you able to view the Schedule 1?

     

    View Schedule 1 at Tax Tools / Tools / View Tax Summary / Preview my 1040.

     

    @dukeso 

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