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What is UT tax?


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#1 gfizer

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Posted 07 April 2008 - 01:17 PM

Okay, at the risk of sounding stupid I'm going to ask this question. I am doing a return for a new client who finally got tired of being robbed blind by Block. In looking over the copy of the 2006 return and there are no figures on lines 57 through 62 of the 1040 but I see an entry on line 63 of $5 for total tax. Beside the line are the letters "UT." Maybe my brain isn't working as it should this late in the season but for the life of me I can't figure out what "UT" stands for. Any ideas?

#2 Booger

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Posted 07 April 2008 - 01:24 PM

Have a client who is retired from GM....receives a W2 every year that has uncollected FICA taxes shown
in box 12 as Codes M & N. The UT is the designation for "uncollected FICA taxes. Bet your client has the same
thing. Take a look at their W2. The UT is what the IRS wants you to put on the specific line on the 1040.

Booger

#3 gfizer

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Posted 07 April 2008 - 01:30 PM

Have a client who is retired from GM....receives a W2 every year that has uncollected FICA taxes shown
in box 12 as Codes M & N. The UT is the designation for "uncollected FICA taxes. Bet your client has the same
thing. Take a look at their W2. The UT is what the IRS wants you to put on the specific line on the 1040.

Booger



Thanks, Booger.

I looked on last year's W-2 and that's exactly what it is.

#4 Don in Upstate NY

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Posted 07 April 2008 - 01:40 PM

Elaborating on Booger's answer, the reason for this strange W2 is usually a retirement benefit that is taxable to the retiree, such as a pre-paid legal plan or employer provided life insurance over $50K, that remains in place after retirement. The value is treated as a taxable wage, but since no money actually goes to the retiree there is no possibility of actual withholding. So the codes M and N are used in box 12 indicate the Unpaid Tax.

A less common cause of UT is a waiter/waitress who reports tips to the employer which are properly shown in box 7 of the W-2, but makes so little in actual wages that the employer cannot withhold enough FICA and Medicare. These Unpaid Tax amounts are also shown in box 12 using codes A and B.

#5 Booger

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Posted 07 April 2008 - 01:44 PM

You're right. My client is still being covered by GM regarding life insurance. That is why he
still receives the W2 even though he's been retired for many years.

Booger

#6 cpabsd

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Posted 07 April 2008 - 02:32 PM

I too have these GM retirees. Problem is ATX will not allow these to be e filed. If it is life insurance, the uncollected code is such that it can be e filed. However, when code M and N are used, the system won't allow it. What do you other prepares do with these returns? Is there a way to input so that they can be e filed?

Thanks

#7 jklcpa

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Posted 07 April 2008 - 03:58 PM

I have a retired Chrysler worker that has the same thing: $90 for legal plan. W-2 has codes M & N. I e-filed this return with no problem back in mid-Feb. 2006 was e-filed too.

#8 Lion EA

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Posted 07 April 2008 - 10:47 PM

I had a retired New York Bell worker who got phone service and had those codes.




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