58369

[#1]

The following diagnostic is generating: FORM W-2 #1: CONTAINS AMOUNTS FOR (11) NONQUALIFIED PLANS OR WAGES EARNED WHILE INCARCERATED. THESE AMOUNTS ARE REPORTED ON THE SCHEDULE 1 AND ARE NOT INCLUDED IN THE WAGE AMOUNT REPORTED ON FORM 1040. THIS RETURN WILL BE REJECTED AND MUST BE FILED ON PAPER. THE IRS IS REVIEWING THE APPLICABLE BUSINESS RULE AND WILL BE ADDRESSING THIS ISSUE IN THE FUTURE.

[Kathleen1]

My only concern is that box 12 Y seems to indicate a current year deferral.  Whereas, the amounts in box 11 are actually prior year deferrals being paid out in the current year.  So I'm not sure that solves the problem.  Still wondering if there is a fix coming in the near future.

[HarperCPA]

Anyone else found a workaround? The only thing I can see working is to remove the amount in Box 11 in lacerte, the income goes back to line 1a of 1040 and the diagnostic goes away. Should not change anything else on the return, just moves where the income is reported. 

Hoping Lacerte corrects this prior to needing to efile one of these.