Level 2

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Is there a solution to this Critical Diagnostic When I call in for support I get nothing

Forum|Forum|3 years ago
February 11, 2023
4 replies
19 views

Form W-2. Contains either an amount for box 11 Nonqualified plans or the checkbox for Wages earned while incarcerated carry to Schedule 1 is checked. These amounts are reported on the Schedule 1 and are not included in the wage amount reported on Form 1040. This return will be rejected and must be filed on paper. The IRS is reviewing the applicable business rule and will be addressing this issue in the future.Ref 58369

This is just a client's W2 with Box 11 filled in with non-qualified income. No issues for the last 4 years of reporting this client's nonqualified deferred compensation. Should be reported with wages and should not be carrying to schedule 1.

ProConnect Tax

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Best answer by IntuitRebecca

Hi all,

The IRS updated its business rules and returns with W-2 box 11 should no longer be rejected. This diagnostic will be removed on our next update. If you need to e-file before the update, you can check the "Ignore" box to disable the diagnostic.

Best,

Rebecca

sjrcpa

Level 15

Intuit knows about this. Support sucks.

Somewhere in these forums someone posted a workaround. Of course, the search function here sucks, too.

The more I know the more I don’t know.

George4Tacks

Level 15

Contact support, they are open Saturday until 4 Pacific. https://proconnect.intuit.com/support/en-us/help-article/intuit-account-settings/contact-proconnect-tax-help/L031xWrR5_US_en_US?uid=le0jhr9p

OR

Wait for an update that fixes the issue.

Answers are easy. Questions are hard!

R

ruthjanis

Level 2

I am having the same issue. Drake is not giving me this diagnostic, hmmm. I don't see a harm in taking out the amount in box 11 and calling it a day. There is no tax consequence to doing this.

K

kmyfinancialAuthor

Level 2

Nonqualified plan distributions are not subject to Social Security, Medicare, and FUTA taxes because the amounts were likely already taxed when the employee deferred the earnings so this could be an issue if the amount of deferred compensation isn't reported in box 11. I plan to wait until this is fixed hopefully in the next month.

Below is from "What's New" regarding this year's 1040-SR regarding this change.

New lines 1a through 1z on Form 1040 and 1040-SR. This year line 1 is expanded and there are new lines 1a through 1z. Some amounts that in prior years were reported on Form 1040 and Form 1040-SR are now reported on Schedule 1.

. Scholarship and fellowship grants that were not reported to you on Form W-2 are now reported on Schedule 1, line 8r.

. Pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan are now reported on Schedule 1, line 8t.

. Wages earned while incarcerate are now reported on Schedule 1, line 8u

IntuitRebeccaAnswer

Level 6

Hi all,

The IRS updated its business rules and returns with W-2 box 11 should no longer be rejected. This diagnostic will be removed on our next update. If you need to e-file before the update, you can check the "Ignore" box to disable the diagnostic.

Best,

Rebecca

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