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W2 w/no wages and federal and state withholding


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Client's W2. ATX will not allow efile for IRS or NYS

IRS: W-2 cannot be transmitted. Withholding amount is present but IRS requires a corresponding wage amount greater than zero when e-filing or return will be rejected.

NY: State withholding can not be greater than or equal to state wage.

Not sure how to get past this. My thought was to put the NY withholding amount (+1) as wages and then back it out as a Schedule 1 adjustment. But this just seems like a hack approach to me.

Anyone have any other thoughts?

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43 minutes ago, cbslee said:

How is this a legitimate W -2 ? No combination of these numbers make sense!

There were other additions that were not taxable wages that were allowed to be put to withholdings. But the 403B contribution is higher than Social Security wages, which can happen but seems unlikely here.

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4 minutes ago, Abby Normal said:

There were other additions that were not taxable wages that were allowed to be put to withholdings. But the 403B contribution is higher than Social Security wages, which can happen but seems unlikely here.

Really, give me a real life example that makes sense?

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Here is the client's explanation:

"I've been out injured all of 2020 on 207C disability which is a disability for police that I continue to get full pay that is tax free. taxes were taken out of my pay for the first few paychecks until human resources corrected it. Some of the tax is also for uniform allowance that comes in two checks of 737.50 and is taxed 289.61. Only thing taken out of paycheck is my healthcare contributions and union fees."

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3 hours ago, Abby Normal said:

You could enter the withholding elsewhere as some kind of payment or you'll have to paper file. The W2 doesn't need to be entered unless the retirement savers credit is applicable.

Is this the only W2?

I remember doing this before, but I don't see it anymore!

Yes it's the only W2. How does filing without the W2 handle the federal and state withholding?

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3 hours ago, HV Ken said:

put the NY withholding amount (+1) as wages and then back it out as a Schedule 1 adjustment

Might be the quickest and easiest way to get it done.

HR should have made the correction and paid the amount withheld back to him.

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6 minutes ago, HV Ken said:

ow does filing without the W2 handle the federal and state withholding?

Enter it as an other payment in the taxes paid section. IRS might still send a notice but total payments won't change. I've gotten these notices before.

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3 minutes ago, DANRVAN said:

Might be the quickest and easiest way to get it done.

HR should have made the correction and paid the amount withheld back to him.

Funny that you are quoting me - something I know I wrote - but I don't see what I wrote in the thread. 🤷‍♂️

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3 hours ago, HV Ken said:

Not sure how to get past this. My thought was to put the NY withholding amount (+1) as wages and then back it out as a Schedule 1 adjustment. But this just seems like a hack approach to me.

Right there, first post!

5 minutes ago, HV Ken said:

Funny that you are quoting me - something I know I wrote - but I don't see what I wrote in the thread. 🤷‍♂️

 

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Looks like employee's portion of healthcare contributions & union dues are deducted but since this is post tax I believe wages amount should be present in W2 & post tax deductions should be shown in column 14

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Here is what I would do, as Abby mentioned no need to input the W-2.

Instead report on Schedule 1 as 1099 misc with the federal and state withholding and the minimum amount of income needed to cover withholdings.

Then make an separate schedule 1 entry to back out the income.

Bottom line:

-zero wages reported

-zero schedule 1 income

-federal and state withholdings correctly reported.

I am overlooking anything here?

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19 hours ago, Abby Normal said:

Alternately, you enter 1 for wages on the W2 screen and IRS is cool with the efile. Then you just have to handle the state withholding.

Years ago (don't remember the software company anymore) I was told to do exactly this with the $1 income. On the state, if the software won't allow income less than tax withheld, enter it as a tax payment made on the state return. I did this for several years in the late 2000's and never received a letter from the state or IRS on it.

 

 

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