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W-2 Box 12 Code D and Code W values different on federal vs. state copies?
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I worked for one employer the entire year and thus received one W-2. However, I started out the year in WA (no state income tax) and then moved to CT partway through the year. In the past, I always received four identical copies on my W-2, but this year, the two state copies (Copy 2) differ from my federal copies (Copy B) in Box 12. In particular, my box 12 codes are D and W for my 401k and HSA contributions.
Box 12 on my federal copies show the amounts of my 401k and HSA contributions from the full year. Box 12 on my state copies show only the amount of 401k contributions and HSA contributions that were made while I was living in CT (I verified against my paystubs and summing up the values). Is this how it's supposed to be handled? Or should the Box 12 code D and W amounts be identical between all the copies?
Perhaps this all doesn't matter anyways if my CT taxable income is stated correctly in Box 16?
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How is the W-4 Extra withholding calculated if one spouses job is SS Tax Exempt?
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Would I still consider their job in the W-4 Multiple Jobs worksheet? It seems like I would ignore their job since it is exempt.
Additionally, it feels like in the past we've had to pay taxes (not get a refund), despite having a dependent and my job contributing to SS. It seems like when I do our taxes it seems like it is expecting their job to have SS withheld and I'm needing to pay to cover it. Am I just confused, or should it know that their job is exempt.
Top Comment: If it's only exempt from SS tax, then you fill out your w4 normally, the income is still subject to income tax, so it still needs to be factored in. When you file your taxes, you are calculating the income tax you owe. Income tax is not the same as SS tax. For self employed people SS tax does get added to the tax return, but not for employees. Ignore that the job is SS exempt when filling out your w4, and withhold income taxes on that income.
Box 16 on W-2 multi-state income confusion
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Hi all, I'm trying to figure out my state taxes for the year and I've run into some confusion. I was living in NY for the first 2 months of 2022, and then I received a job offer for a job that would start on March 1st. I didn't move out of NY until March 5th, so I was technically earning a tiny bit of taxable income in NY between contract start date and relocation date.
This has been reflected on my W-2 as a small amount of NY state income tax withheld in Box 17, but in Box 16 for NY should the number be for my whole year's worth of wages, or as a percentage of the total amount, just the 4ish days that I was still a resident in NY when my contract started? From what I understand, the amount should just be the wages that I earned in state for those few days, and not the full year, because right now it has my full year's worth of wages in box 16 for both states, even though I have been a resident of California since March 5th. I'm just wondering if this may be a mistake on my former employer's part.
Thank you!
Top Comment: Hi all, I'm trying to figure out my state taxes for the year and I've run into some confusion. I was living in NY for the first 2 months of 2022, and...
W-9 Form for issuing a 1099-MISC for landlords
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Can you issue a 1099-MISC without the landlords W-9 form? Specifically, without having their TIN? If not, how do you convince them to complete the W-9 Form? What recourse do you have?
Top Comment:
1099s in general are issued by payERs of interest, dividends, etc.
What recourse do you have?
Simple: Don't pay them until you have a completed W-2 or W-9 form on file.
2802C: Incorrect form W-4 submitted to employer help
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My husband received a letter from the IRS w/the statement below.
On the letter the tax period is blank as is the form field.
He's been with the same employer for 23 years; we file 'married filing jointly'. Nothing has changed on our side.
We end up owing annually and in prior years have paid it in full. This year we went on a payment plan. Could this be the reason for the letter? They want to force extra income withheld? What does it matter to them as long as they get paid?
The only other thing I can think of is that his employer has a new HR person, the old one retired. Is there something they could have submitted on their side that triggered this? She's screwed other payroll 'stuff' up - so new he gets paid on a Wed v. Thursday, as an example.
Language in the letter is below - I appreciate your advice!
"We believe you submitted an incorrect form W-4, Employer's Withholding Certificate, to your employer. Federal income tax is paid through withholding. Under-withholding on your wage income could result in you owing money when you file your federal tax return. It is a legal requirement to have adequate withholding from wages, timely file all tax returns and pay all taxes in full.
WHAT YOU NEED TO DO
-Immediately provide your employer with a new Form W-4.
-Vist wwww.irs.gov and search the keyword "withholding estimator" to determine the proper amount of federal income tax to be witheld from your wages.
Please DO NOT send the corrected Form W-4 to the IRS. You must provide the original to your current employer so they can withhold the proper amount of. Income tax from your wages.
WHAT CAN HAPPEN IF YOU DON'T SUBMIT A CORRECTED FORM W-4
"if you dont submit a corrected Form W-4 to your employer, we may determine that you aren't allowed to claim exempt status or less than a specified amount income tax withholding. You could be selected for the Withholding Compliance Program. We would send your employer a "lock in letter" instructing them to begin withholding tax from your wages based on a specified withholding status (filing status) and withholding rate to ensure adequate withholding. Your employer must disregard any Form W-4 from you, unless it results in more withholding than specified in the lock-in letter.
Please note: Even if you have an installment agreement for the past balances due, you could be selected for the Compliance Withholding Program.
YOU COULD BE ASSESSED A PENALTY
Top Comment:
We end up owing annually and in prior years have paid it in full. This year we went on a payment plan. Could this be the reason for the letter? They want to force extra income withheld? What does it matter to them as long as they get paid?
Yes, needing to go on a payment plan is likely what triggered the IRS to send this letter now. If you've owed more than $1000 for the last few tax returns, and especially if the amount you owed was getting larger every year, then they would have eventually sent it anyway; but not being able to pay on time will get them to send it sooner than they otherwise would have.
You are legally required to withhold enough to reach one of the safe harbors during the year. You haven't been complying with the law, so they're letting you know that this is a problem and they're giving you a chance to fix it with your employer before they do it for you.
Two W-2 jobs and exceeded FICA threshold
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Hi-
I have two w-2 jobs and have exceeded the FICA threshold where I no longer should be deducted for social security.
My employers cannot make the adjustment on their end.
What form do I file? and can I file this at any time? I will need to do this for my 2022 taxes as well.
Thanks!
Top Comment:
The excess social security tax withheld would go on Schedule 3 as a refundable tax credit. (In the 2022 and 2023 forms it would go on line 11.) The total of all the refundable credits from schedule 3 is transferred to line 31 on the 1040 and acts as a payment against your levied income tax.
W-4MNP
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I was requested to complete W-4MNP, Minnesota Withholding Certificate for Pension and Annuity Payments.
I’m a Minnesota resident and have a Roth IRA account. I did complete a backdoor this year, so I have a IRA account open with $0 and Roth IRA account with $6000.
My question is, on the form W-4MNP I’m required to complete, do I complete section 1 or section 2?
Edit - link to form for reference: https://www.revenue.state.mn.us/sites/default/files/2022-08/w-4mnp.pdf
Top Comment:
If you are making IRA conversions, you should always elect to waive withholding (section 2).
A properly executed backdoor conversion should have zero tax due, and even if it did you should never pay tax out of the conversion amount because that would be a distribution and subject to penalty.
Can I reduce my 1099 or W-2 tax liability with K-1 Losses?
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I have an LLC that I own with some of my brothers. We are all active participants, but not real-estate professionals. We own a few rental properties that we then generate K-1s from. We have yet to turn a gain from any of these, and my expectation was that these losses would decrease my tax liability during the year. Although when going through TurboTax they are stating that there are limitations of the passive activity losses, and they can only be used to offset the passive activity gains?
Is this right? I would love some clarity :) Happy to provide further details if needed.
Top Comment: Yes, that's correct. Active participation is only part of the picture - it's a necessary but not sufficient condition for using passive activity deductions.
Forgot a w-2 until i already filed - return was accepted.
Main Post: Forgot a w-2 until i already filed - return was accepted.
Top Comment: I would not amend. The IRS may adjust it for you later and send you a letter but likely not with how small this is. I would pass on amending.