Can a return be efiled with code z in box 12 of Form W-2?

[Just-Lisa-Now-]

What does Code Z stand for?

[pwilson13]

Income under a nonqualified deferred compensation plan that fails to satisfy section 409A.  This is the first time I have run across this, any help would be appreciated.

[Just-Lisa-Now-]

Yea, I dont think Ive seen one of these, but I feel like people have asked about it before....looks like PS doesnt support the calculations, hopefully someone can point you in the right direction.  How much money are we talking about?

[pwilson13]

Box 12 Code Z shows $1082.84

[qbteachmt]

"Z – Income under a nonqualified deferred compensation plan that fails to satisfy Section 409A. This amount is also included in Box 1 and is subject to an additional 20% tax plus interest. See Form 1040 instructions, Schedule 2, line 17h, Other Taxes, for more information."

[pwilson13]

Thanks everyone for your input!  The client got back to me this morning and said a corrected W-2 is in the works, without Code Z (yay!!)  Hopefully this information will help someone else that runs into this issue. Doing research on this issue was not wasted, no education ever is, but I would have preferred not to do it in the middle of the season!