Similar situation for my client - not taxable by Lacerte in 2022, which is taxpayer's first full year of retirement-not sure if that makes a difference.  However, in 2021, Lacerte did NOT reduce the wages for the amount in Box 11 - taxpayer retired part way through 2021. Was Lacerte handling the taxation correctly in 2021? Or incorrectly in 2021? 

Thank you for any help regarding this.