Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
<< Does anyone know if a mandatory government pension quailifies as a "mandatory state insurance fund"? Box 14 of my W-2 has the word "pension" and the amount of my annual pension contirbutions. When I entered this into Turbo-Tax, it said that this deduction was only for certain "state mandatory insurance funds" and it listed a few, none of which was a pension. This entry on box 14 only started in 1997 when there was a change to the law that said my pension contributions could be deducted pre-tax. Before that, my prior W-2's are blank in box 14. >>

I think I saw this same question (yours?) over on Usenet, and it included the fact that TurboTax was adding the box 14 amount to the itemized deductions. It seems clearer here.

Question: Is the amount in box 14 reflected in the amount in box 1? IOW, have your box 1 wages been reduced by the amount shown in box 14? If so, leave it out of TT's box 14 entry. If not, contact your payroll people to find out why box 1 is wrong. Another quick way of checking is to add box 1 and box 14. The total should equal box 5, Medicare wages.

I think TT is assuming amounts entered in box 14 as "mandatory state insurance funds" are something akin to the California Disability fund deduction, which is a Schedule A deduction. Yours is a pension, not an insurance fund.

Phil Marti
Tax Preparer
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.