Wages

Wages	Data Entry:
Employer Name	Employer 1
(13) Retirement Plan
(1) Wages	$60,000
(2) Federal income tax withheld	$12,766
Employer Name	Employer 2
(13) Retirement Plan
(1) Wages	$23,500
(2) Federal income tax withheld	$3,115
(4) Social Security tax withheld	$1,950
(12a) 401k Contributions	$3,525

Program Considerations

• You can enter W-2 information through the grid or the expanded input.
• The expanded input of Screen 10, Wages, Salaries, Tips is designed to facilitate data entry from a W-2. The numbers in parentheses preceding the descriptions refer to the box numbers on the W-2.
• Social security tax withheld and Medicare tax withheld are calculated automatically based on the wage amount amount entered; these amounts can be overriden.
• Check the Spouse box to indicate the W-2 relates to earnings of the spouse.
• Check the Retirement plan box to indicate the recipient of the W-2 is covered by an employer pension plan. This information is used to limit IRA contributions.

  Note: If excess FICA is entered from one employer, the program issues a diagnostic listing the amount that should be refunded by the employer. If excess FICA is entered from a combination of two or more employers, the program automatically generates a credit for the excess amount.

• Check the Statutory employee box to indicate that the earnings are those of a statutory employee. If the taxpayer has more than one Schedule C, enter the prefix number of the related form in the Number of Schedule C field.

  Note: If the taxpayer has both self-employment income and statutory employee income, you must enter the information on separate Schedule C screens.

• Check the More than 2% shareholder in S corporation box to indicate that the wages were received from an S corporation in which the taxpayer owns more than a 2% interest. This entry causes the program to include wages in net income for the self-employed health insurance deduction.
• The program provides an option to print a wage schedule containing all W-2 information for a return either as a worksheet or as a statement. For additional information on setting this option refer to the Tax Return exercise in the Before You Prepare a Return section (Program Operations tutorial).

How?

To enter W-2 information:

1. Open the sample client.
2. Open the Wages, Salaries, Tips screen.
   
3. Enter the information from the Wages table above in the appropriate input fields.

To view a different W-2:

1. Click the W-2 in the W-2 list.
   

To add a new W-2:

1. Click Add at the bottom of the W-2 list.
   

To delete a W-2:

1. Highlight the appropriate W-2.
2. Click Delete at the bottom of the W-2 list.
   

Tips & Shortcuts

You can press [Ctrl]+[A] to add W-2's and [Ctrl]+[D] to delete W-2's.

Review

You should have entered W-2 information for the sample return and produced the following results on Form 1040:

Troubleshooting

Problem: I am not getting a credit for excess FICA on Form 1040.

Solution: Make sure that the Spouse box was not checked on either of the W-2s.

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