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Level 2
April 6, 2026
Question

how do i make w2 box 11 amount not taxable?

  • April 6, 2026
  • 1 reply
  • 1 view

Client's w2 has minor amount in box 1, and much larger same amount in box 5 and box 11.  Box 1 amounts seems to be a medicare tax amount as it's 1.45% of the amount reported in box 5 and 11.  In this case, box 11 amount appears to be a contribution to NQDC, not a distribution from it.  However, when I input these numbers into Proseries's w2 worksheet, box 11 amount flows to schedule 1, line 8t and becomes taxable.  Should I just omit box 11 amount in w2 worksheet?  Or input numbers into w2 worksheet as is, then input negative amount to zero it out in other income adjustment?  Or any other way to work around?

1 reply

sjrcpa
Level 15
April 6, 2026

What makes you think the NQDC on the W-2 is not taxable?

The more I know the more I don’t know.
hunner00Author
Level 2
April 6, 2026

Amounts in box 6 and 11 are same, and box 1 amount is 1.45% of those amount, which makes this w-2 seem issued to report the medicare tax paid or withheld by employer on behalf of my client.  Client also confirmed he didn't receive any distribution from the non-qualified plan but rather made contribution to it.

sjrcpa
Level 15
April 6, 2026

You can have client check with Employer but it seems that the NQDC is taxable now even though he didn't receive it yet (i.e. deferred)

The more I know the more I don’t know.