Form W-2

Tax Slayer entry:

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

  • Income reported on this form appears on Form 1040 line 1 – Wages, Salaries, Tips, etc.
  • Federal tax withheld appears on form 1040 line 16 – 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.

Box d:

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

Box 1:

  • If box 1 is 0, you do not need to enter this W-2.
    • If tax was withheld, enter the amount in Federal Section > Payments and Estimates > Other Federal Withholding

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 8:

  • If the taxpayer has a tip log, the amount from the log can be used instead of the box 8 amount. But, enter the amount as Unreported Tips and leave box 8 empty.
  • If any tips were not reported to the employer because they were under $20/month, enter those in Unreported Tips and also in the resulting Form 4137 to prevent them from being taxed.

Box 9:

  • Verification code (new box in 2017).
  • Previous years may be placed in other white space.

Box 10:

  • Ask the taxpayer if this was a reimbursement or if it was sent directly to the care provider on your behalf. If the latter, it can be added to the amount you paid directly. (It will be subtracted out on Form 2441).
  • And, be sure to also, complete Form 2441 or the amount will be included as taxable income.

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 should have provided a Form 1095-C with that information. Also determine who was covered. Note that the amount shown is what the employer paid, not what the employee paid.
  • ☣ SOFTWARE ERROR If code is “H” in 2016 return, TaxSlayer does not carry the amount to 1040 line S1-36. Fixed in 2017 returns. Needs to be verified for 2018 on the new Schedule 1.
  • 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 13:

  • If the W-2 indicates Statutory Employee, you will be prompted to create a Schedule C after entering the W-2.

Box 14:

  • If the amount is eligible for the retirement saver’s contributions credit, select Retirement (Not in Box 12) – Carry to Form 8880.

Box 15-20:

  • If the state is not CO, you likely have a part-year resident.