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Common questions on Form W-2 data entry in ProSeries

by Intuit•10• Updated 1 week ago

Below are answers to frequently asked questions about W-2 inputs in ProSeries.

For tax year 2025 the IRS did not have specified mandated reporting requirements on how to report Qualified Tips and Overtime on the W-2. These may have been broken out on box 14 of the W-2 or a supplemental statement or need to be manually calculated. See guidance here.

Entering Qualified Tips and Overtime for the Schedule 1-A for tax year 2025

Entering Qualified Tips as qualified tips received as an employee on Form W-2 Box 7 for line 4a of the Schedule 1-A:

  1. Open the W-2 Worksheet.
  2. Complete lines 1-14 from the W-2 received.
  3. Any amount on box 7 as Social security tips will flow to the Schedule 1-A box 7.

Entering qualified tips included on Form 4137 but not included on the W-2 box 7 for line 4b of the Schedule 1-A:

  1. Open the W-2 Worksheet.
  2. Complete lines 1-14 from the W-2 received.
  3. Scroll down to Part III - Unreported Tip Income & Tip Deduction.
  4. On lines 2-6 enter the amount on the best applicable line for the tax situation.
  5. On line 9 select the best description for the occupation.
  6. Answer Yes or No on line 10.
  7. The amount on line 11 will flow to the Schedule 1-A.

Entering qualified overtime on a W-2 for the Schedule 1-A line 14a:

  1. Open the W-2 Worksheet.
  2. Complete lines 1-14 from the W-2 received.
  3. Scroll down to Part VII - Deductible Overtime.
  4. Complete line 14a.
  5. Enter the Overtime dollar amounts on 14b in the applicable column.
  6. Enter line 14c:
    • Check Yes if you want ProSeries to calculate the estimated amount of qualified overtime based on the amount entered.
    • Check No if you have the actual deductible amount for the qualified overtime and enter the deductible amount on 14d.

Entering Form W-2 box 14 in ProSeries

Most information in Box 14 is for information only and is not needed for the tax return, however, some entries will be used in the preparation of either the Federal 1040 or an individual state.

On the Form W-2 Worksheet, box 14, enter the Description or Code on Actual Form W-2 and the amount reported on the W-2.  For each entry pick the description that best matches, or use Other - not on above list if the description is not available.

Available selections for the Box 14 include:

  • CA SDI tax
  • CA VPDI tax
  • MA Paid Family Medical Leave
  • NJ SDI tax
  • NJ UI/WF/SWF tax
  • NJ FLI tax
  • NY Nonoccupational Disability Fund tax
  • Oregon Statewide Transit Tax
  • PA Unemployment tax
  • RI TDI tax
  • WA Workers Compensation Fund tax
  • WV Unemployment Fund tax
  • AK Unemployment tax
  • HI SDI tax
  • Other mandatory deductible state or local tax not on above list
  • Wages for SDI, VPDI, TDI, UI, etc.
  • Charitable cash contributions
  • State deductible employee expense
  • Kansas Public Employees Retirement
  • Maine State Retirement System
  • Mass. State or U.S. Retirement System
  • Maryland ST Pickup
  • NY IRC 125/SEC 18 Subject to NY tax
  • NY IRC 125/SEC 18 NY Tax exempt
  • NY IRC 414(h) Subject to NY tax
  • NY IRC 414(h) NY Tax exempt
  • NYC Section 1127 Waiver
  • NY Start-Up
  • Railroad Retirement Compensation
  • Railroad Retirement Tier 1 tax
  • Railroad Retirement Tier 2 tax
  • Railroad Retirement Medicare tax
  • Railroad Retirement Additional Medicare tax
  • RRTA Tips
  • Sick leave wages subject to $511 per day
  • Sick leave wages subject to $200 per day
  • Emergency family leave wages.
  • Code U, V, W, X, Y, or Z
  • Other - not on above list

Entering local wages and taxes on Form W-2 in ProSeries

ProSeries can flow information from the W-2 boxes 18, 19 and 20 to city and local returns that are supported by ProSeries. To enter local wages and taxes:

  1. Open the W-2 Worksheet.
  2. Enter the amounts on Box 18 and Box 19 as shown on the W-2 itself.
  3. In Associated State enter the states two-letter ZIP code.
  4. Right-click in Box 20 and select About Box 20.
  5. Click on the state name, or click on Printable List of All Locality Codes Supported by Form W-2.
  6. Enter the code for your locaility in Box 20 of the W-2 Worksheet, even if it doesn't match the code on the W-2 recieved.

Reporting statutory employee income on the W-2

If box 13a is checked on the W-2 worksheet you may need to flow the income to a Schedule C.

Linking W-2 income to Schedule C

  1. Open the W-2 Worksheet.
  2. Scroll down to Part I — Statutory employees
  3. Check the box on line A.
  4. Check the box on line B.
  5. Double-click on line C.
  6. Select the Schedule C the income needs to flow to.

Entering Form W-2 third-party sick pay

The taxpayer should receive a Form W-2 with the third-party sick pay entered in Box 12 with code J.

  1. Complete the W-2 Worksheet using the information from the W-2 that was issued.
  2. Go to page 2 of the W-2 Worksheet.
  3. Scroll down to Part VI - Additional Information for Electronic Filing and Certain States.
  4. For line 13c, check the box for Third-party sick pay.

The IRS won't allow the return to be electronically filed without an amount in box 1 of the W-2. In this case, the return must be paper filed.

What's new for Form W-2 for tax year 2024:

  • Box 12 has been updated to include a new code II for Medicaid waiver payments excluded from gross income under Notice 2014-7
    • If Box 1 Wages, tips, other compensation isn't blank, this return can be e-filed as normal.
    • If Box 1 Wages, tips, other compensation is blank and you're receiving an error that this return can't be e-filed: These returns will be rejected as the e-file systems are being updated to include this new situation in the e-file rules.
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