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W-2 Income in box 12 code z

Forum|Forum|6 years ago
February 29, 2020
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I have a W-2 from a previous employer with a Only small amount of income reported in box 12 with code z. Turbo tax automatically imported my W-2, but it says it cannot calculate the tax on it. Do I need to manually fill out any values or additional forms here? Has anyone run into this/will I still be able to efile with this?

Thanks!

Best answer by macuser_22

I deleted my prior posts that were totally incorrect. I made a big blunder. The line 8 in the instructions is not the 1040 line 8 but the schedule 2 line 8 - totally different.

Schedule 2 line 8 makes more since that is "Additional Taxes".

It appears that this IS actually supported in the interview mode.

Search topics for "other taxes". There is a line just for this.

Sorry to mislead you,

macuser_22

Employee

Is there anything in box 1?

A zero box 1 cannot be e-files per IRS rules. The IRS does not want a do-nothing W-2.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

P

PhoenixbtAuthor

Thanks for the reply! Yes, same amount ($102) is listed both in box 1 and in 12. That’s all that’s on the w-2

L

linaj20201

Yes, you would need to manually handle it. TurboTax does not support its calculation.

Per instructions,

Z: Income under a nonqualified deferred compensation plan that fails to satisfy section 409A. This amount is subject to an additional 20% tax plus interest (TurboTax does not support this calculation).

See instructions on how to report, click here: https://www.irs.gov/pub/irs-pdf/iw2w3.pdf , page 21

@Phoenixbt

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PhoenixbtAuthor

Thanks! So with the additional 20% calculation, can I still use the rest of the taxes as prepared by turbo tax then I just have to fill in this extra value in a different form? Is the 409A form they refer to in the link you sent something I need to add in using the forms view? Never had to do this before, so apologies for the dumb questions

macuser_22

Employee

@Phoenixbt wrote:

Thanks! So with the additional 20% calculation, can I still use the rest of the taxes as prepared by turbo tax then I just have to fill in this extra value in a different form? Is the 409A form they refer to in the link you sent something I need to add in using the forms view? Never had to do this before, so apologies for the dumb questions

409A is the section of the tax code, not a form. I am not familuar with code z so I don't know how to report it since TurboTax does not support it.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**