W-2, box 11

**Lion** · 04-13-2009, 10:20 AM

Been a while

Haven't had one of those for a few years, and was at Block so no access to return now. She received a huge bonus and had an option to defer up to $whatever. So, her W-2 showed her wages and bonus that she chose to receive in Box 1 with the deferred part of the bonus below. Don't remember what, if anything, I had to do. Can you get help in your software while on that field? Did she get a letter from her employer at the time of the bonus? (Mine did, I think.)

**Burke** · 04-13-2009, 10:33 AM

This is usually deferred comp. Paid to execs who retire and defer income tax until later. They pay FICA/MC at the time it is granted. So usually nothing in Box 3, 5. Could this be it?

**Lion** · 04-13-2009, 10:38 AM

And

And, now she's getting the distribution and pays income tax but already paid SS and Medicare, right? Is it already included in Box 1? What does your software do with the Box 11 number? I know, I know, but it's a clue what to look up. I've tried "deferred compensation" "W-2 Box 11" and a couple of combinations and permutations but don't find anything in my texts other than the employer cannot deduct as an expense until the employee reports in income and some stuff like Burke mentioned about highly compensated, non-qualifying, discriminates, etc.

**DTS** · 04-13-2009, 10:45 AM

Yes,

I'm sure it is deferred comp. L7 on the 1040 has the initials and amount shown as "DFC- $$,$$$" on the line and the amount is included as wages.

D

**Burke** · 04-13-2009, 10:48 AM

That is correct. Should go on Line 7 as wages. Will qualify TP for anything earned income is needed for. And, yes, it should be included already in Box 1.

**DTS** · 04-13-2009, 10:51 AM

Deferred comp

Thanks, Burke and Lion. It was my understanding the other day at interview that she is no longer working for this company. I will confirm tomorrow.

Thanks,

D

W-2, box 11

W-2, box 11

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