W-2 with no income

[NotEasy]

Taxpayer received a W-2 which only reports the dependent care benefits. Therefore, there are no figures in box1. As a result, the program refuses to efile the tax return.

I remember this discussion has once came up before. I also remmeber someone said he would put $1 in box 1 of this W-2 so the tax return can be efiled. And then he would deduct $1 from another W-2 to balance it out so the total wages would be correct.

Does anyone see anything wrong with this approach?

[Dusty2004]

Same employer

Taxpayer received a W-2 which only reports the dependent care benefits. Therefore, there are no figures in box1. As a result, the program refuses to efile the tax return.

I remember this discussion has once came up before. I also remmeber someone said he would put $1 in box 1 of this W-2 so the tax return can be efiled. And then he would deduct $1 from another W-2 to balance it out so the total wages would be correct.

Does anyone see anything wrong with this approach?

If it was for an employer that I had a valid W2 for I would enter it on that W2. Otherwise how could they get a W2?

Dusty

[Koss]

Dependent Care Benefits

Did they really receive zero wages? Or did the same employer issue another Form W-2 that has wages on it?

How did they get dependent care benefits but no wages?

BMK

[NotEasy]

Did they really receive zero wages? Or did the same employer issue another Form W-2 that has wages on it?

How did they get dependent care benefits but no wages?

BMK

Well, for whatever reason, the wages are paid by the employer. But the dependent care benefits are paid by the labor union.

And I think this is not an unique case. I remember at least one other board member had come across the same situation. He asked the question here and therefore someone came up with the idea as described in my original post (or it is his experience as to how he had handle similar situation before).

[taxea]

I remember the post but not the question used to search for it. I also don't thing putting 1. in Box 1 would fly anymore now that the IRS "Darling" is comparing income reported to the third-party W-2.

[Burke]

I have one where the W-2 shows no wages. Just $12K+ in Box 12a, Code J. Will this be an efile problem?

[taxea]

I have one where the W-2 shows no wages. Just $12K+ in Box 12a, Code J. Will this be an efile problem?

Many times sick pay is distributed by other than the employer...either way if the IRS Darling has been programmed to look in the correct box then it should file with no problem but be sure to put zero's in the first 6 boxes.
I can't guarantee Darling won't spit out a letter to the taxpayer though.

I would be curious to know what happens when you efile it. email me okay

[kpangelinan]

I have one where the W-2 shows no wages. Just $12K+ in Box 12a, Code J. Will this be an efile problem?

Many times sick pay is distributed by other than the employer...either way if the IRS Darling has been programmed to look in the correct box then it should file with no problem but be sure to put zero's in the first 6 boxes.
I can't guarantee Darling won't spit out a letter to the taxpayer though.

I would be curious to know what happens when you efile it. email me okay

Had this happen this past week and Drake wouldn't let you efile it with no wages, even with 0's in the other boxes, so I didn't include it at all as the sick pay on this W2 didn't affect his outcome. Then efiled it as is and was accepted.......I doubt he'll get a letter, but who knows.

[S T]

Have had a client for at least 5 years that receives one of these Code J

My software, I enter wages Box 1 and enter 12 as a code J showing the income, then enter a 2nd W-2 form as a Minus in Box 1 and nothing in Box 12 - Ends up -0- on Wages, but the Code J is recorded -

However, depending on filing - I also have other W2 Income from husband showing.

Have been able to efile each and every year

Sandy

[taxea]

Had this happen this past week and Drake wouldn't let you efile it with no wages, even with 0's in the other boxes, so I didn't include it at all as the sick pay on this W2 didn't affect his outcome. Then efiled it as is and was accepted.......I doubt he'll get a letter, but who knows.

This is a comparison form for the IRS. It doesn't matter whether it changed the outcome on the tax return.....I predict Darling will spit a letter his way for not reporting it.

[kpangelinan]

This is a comparison form for the IRS. It doesn't matter whether it changed the outcome on the tax return.....I predict Darling will spit a letter his way for not reporting it.

Ahhhhh.....will have to try the "Minus" trick then....don't need the additional unpaid work if I can help it.

[Kram BergGold]

Congrats ST

I like ST's way of doing this. I will try it this year.

[S T]

Thanks Kram,

But now I am wondering if this is the correct way of presenting this. Am I creating another W-2 that is not in the system or altering a W-2 - just due to efile restrictions.

Second thought is that maybe kpangelinan was correct in just omitting - If we think about paper filing - there is no where on the form 1040 that this information would appear for the Box 12 - code J, the only thing we would do is attach the W-2 form - which Box 1 shows -0- So none of this particular W-2 appears on a Paper Return. Box 12 with codes does not appear on the form.

I am going to visit E-Services on my client with this CodeJ W-2 -Box 1 -zero_ issue and retrieve a transcript for year 2009 or 2010 and see what the Income Transcript shows.

So far the client that I have prepared this way, has cleared efile and I have NOT received any CP 2000 notice matching. I believe way back when --- I submitted the way described, as I was "strictly" thinking of the CP2000 match. I knew that it had no issue on reportable income or a tax liability change.

So now more research or a few phone calls

Sandy