Strongsilence-C PA
Level 10
3 weeks ago
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Please double check this answer.
1. Box 14 on the W-2 is for informational purposes
- "Other Fringe Benefits" and "TAFB" (Time Away From Base) typically represent nontaxable employer-provided benefits, such as per diem allowances for meals and incidental expenses incurred while away from home on work-related travel.
- These amounts are usually excludable from taxable income under IRC § 274(n) and § 62(a)(2)(A) as employer-provided per diem reimbursements that follow federal per diem rates.
2. Lacerte Treatment
- Since these amounts are for informational purposes only, they do not need to be reported anywhere on the tax return unless you are using them to reconcile deductible expenses for a Schedule C or Form 2106 (Unreimbursed Employee Expenses, which is only applicable for certain categories such as Armed Forces reservists, qualified performing artists, and fee-basis state/local government officials).
- In Lacerte, Box 14 has an input section, but you do not need to enter these items unless the client needs a record of it for other reporting purposes.
- The amounts should not affect taxable wages or AGI unless they were improperly categorized by the employer as taxable compensation.
Next Steps:
- Confirm that the amounts are employer-provided per diems within the IRS per diem rates.
- Check the W-2 to ensure these amounts are not included in Box 1 (Wages) or subject to Social Security/Medicare taxes.
- If they are informational only, no entry is required in Lacerte