Code K on W2 flows thru form 1040 as added excise tax-gold

Forum|Forum|4 years ago
April 13, 2022
2 replies
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Code K flows thru Form 1040 as excise tax, golden parachute... added tax

Code K description on W2 per (Defense finance W2 explanation) This is "Pretax Vision and Dental Deduction"

What's correct?

ProSeries Basic

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qbteachmt

Level 15

What do you mean by "correct?"

One is Box 12 and one is Box 14. Those are different Boxes, so code K means different things. You have described them properly; apparently, both provisions or benefits apply to this taxpayer's W2 that year.

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IntuitCharlene

Community Manager

ProSeries follows the IRS instructions for the code definitions and how to treat them on the tax return.

Looking at the instructions on the bottom of the W-2 found here: https://www.irs.gov/pub/irs-pdf/fw2.pdf Code K is 20% excise tax on excess golden parachute payments.

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qbteachmt

Level 15

"Code K is 20% excise tax on excess golden parachute payments." <== Box 12

"K – 20% excise tax on excess golden parachute payments. Include this tax on Form 1040 Schedule 2, line 17k, enter the total amount of the tax"

https://www.hrblock.com/tax-center/irs/forms/understanding-form-w2-box-12-codes/

K = Pre-tax dental and vision deductions <== Box 14

"Since there’s no standard list of W-2 codes for box 14, employers can list any description they choose. If the code is unclear, contact your employer and ask what the internal revenue code represents."

https://www.hrblock.com/tax-center/irs/forms/understanding-w-2-boxes-and-codes/

https://support.taxslayer.com/hc/en-us/articles/360015701832-What-are-W-2-Box-14-Codes-for-Defense-Financing-and-Accounting-Service-

Box 12 is more like required reporting and Box 14 is Informational reporting. Typically, that's because Box 12 will impact Gross vs Net and tax withholding. Box 14 is "provided for you information, because you might need to use or refer to it elsewhere."

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