Form W-2

Tax Slayer entry:

Federal Section > Income > Wages and Salaries (W-2).

  • Income reported on this form appears on Form 1040 line 7 – Wages, Salaries, Tips, etc.
  • Federal tax withheld appears on form 1040 line 40 – Federal income tax withheld
  • State tax withheld appears on the state form from which the tax is withheld

Box a:

  • If the Employee’s social security number is not the same as on the Personal Information Form (thus at the top of the W-2 form), the client must have the W-2 re-issued before completing the return.
  • If the Taxpayer ID number entered on the Personal Information form is an ITIN, an SSN field will appear. Enter the SSN from this W-2 in that field.

Box c:

Medicaid Waiver Payment

  • If this W-2 is for a Medicaid Waiver Payment part or all of it is tax exempt (may affect EIC). To be tax exempt, the person receiving the W-2 must be living with the person receiving the care.
  • Enter the received amount as usual but also enter the exempt amount in the Medicaid Waiver Payment box in the TS W-2 form. This will add the entry for line 21 “Notice 2014-7” and the excludable portion amount as a negative number.
  • SOFTWARE ERROR – For MFJ returns, the reduction is always applied to the primary Taxpayer and will deny eligibility for Child and Dependent Care credit if it exceeds their other income. In this case, do not enter the exempt amount on the W-2 and enter the line 21 (negative) amount manually as Other Compensation > Prisoner income. [TSQuestion] Will there be a valid entry added for this?

Box d:

  • If present, it does not have to be entered.

Box 3-6:

  • Boxes 3 and 5 default to the amount in box 1 and adjust if necessary. These numbers do not adjust for entries in boxes 7 and 12.

Box 11:

  • You must manually enter the amount from box 11 in the Colorado retirement exclusion line for non-qualified plans in the CO104 form. See the Colorado 104 resource page for more information.

Box 12:

  • Verify that the codes listed are in scope for your level of certification. (W requires HSA certification.)
  • If code is “DD”, verify that the insurance provided was for the full year. If not, determine what months were not covered for ACA purposes. The employer may have provided a Form 1095-C with that information (optional for 2014). Also determine who was covered.

Box 13:

If the W-2 shows no income in box 1 but Sick Pay is reported as code J in box 12, see the Code J resource page.

Box 15-20: