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Common questions on Form W-2 data entry in ProSeries

by Intuit•1• Updated 2 weeks ago

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

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.

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:

Open the W-2 Worksheet.
Enter the amounts on Box 18 and Box 19 as shown on the W-2 itself.
In Associated State enter the states two-letter ZIP code.
Right-click in Box 20 and select About Box 20.
Click on the state name, or click on Printable List of All Locality Codes Supported by Form W-2.
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

Open the W-2 Worksheet.
Scroll down to Part I — Statutory employees
Check the box on line A.
Check the box on line B.
Double-click on line C.
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.

Complete the W-2 Worksheet using the information from the W-2 that was issued.
Go to page 2 of the W-2 Worksheet.
Scroll down to Part VI - Additional Information for Electronic Filing and Certain States.
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.

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