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Screen W2 - Wages (1040)
Overview
Use this screen to record information from the client's Form W-2. Note that in addition to using the wages information in several locations and calculations on the return, UltraTax CS also prepares a Salaries and Wages Report, which lists the name and amounts entered in this input screen.
If shareholder health insurance premiums on the W2 include amounts paid for specified premiums (i.e. premiums purchased via the Marketplace), enter the type code, form, and unit on the related W2 box 14 to link the 1095A amounts with the correct activity. Any amounts entered in W2, box 14 for medical insurance are treated as non-specified premiums. Therefore, if all premiums are specified premiums, the W2 box 14 code 3 amount column should be blank, while the type code, form and unit fields should remain to ensure the correct link behavior to the 1095A.
Data sharing
UltraTax CS enables you to share Schedule K1, 1099, W2, and 8615 financial data between 1120S, 1065, 1041, and 1040 clients automatically. (Note that UltraTax CS can transfer financial data
into
1120C and 1065-B clients, but not out of
these clients.)You must diligently review all data that is shared among clients. See Reviewing all fields updated via data sharing for information on how to access the Imported Fields Listing.
For clients who do not provide the IRS copy of their Form W-2 for attachment to the return, a custom paragraph may be included in the filing instructions to instruct the taxpayers to attach Form W-2 to the return before filing. The paragraph also instructs the taxpayer to attach Forms W-2G, 1099, and 2439 to the return, if applicable. To select this custom paragraph on a client basis, select custom paragraph
Form Attachments (FI)
from one of the Paragraph Description
fieldviews in the Letter screen. To select this custom paragraph to print for all clients when applicable, choose Setup and then 1040 Individual, select either the Transmittal Letter or Filing Instructions button in the Federal tab, select the Custom Paragraphs tab, and mark the Form Attachments (FI)
box. Source data entry
The UltraTax CS Source Data Entry utility enables you to enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data and transfer it into your client data files via the data sharing feature.
General Information
Use this section to enter general information applicable to the W-2.
note
- For Massachusetts returns, the information entered in this screen is used to calculate the deduction for Social Security payments that are automatically included on Form 1, lines 11a and 11b or Form 1-NR/PY, lines 15a and 15b. For resident clients or clients whose Massachusetts wages exceed their federal wages, the amounts entered in theSS W/HandMedicare W/Hfields are included in the deduction. In all other cases, the deduction is based on the Massachusetts wages only.
- For Kansas returns, the information entered in this screen is used to calculate the addition modification to federal adjusted gross income for contributions to the Kansas Public Employees' Retirement System. The modification is equal to the amount of state wages in box 16 less the amount of wages in box 1.
- For Ohio Cities returns, withholding entered on the same line as local wages is employment city withholding. Withholding entered on a line with no wages is resident city withholding. Local wage default to Medicare wages.
T, S
Enter
T
or S
to indicate whether the wage information you are entering pertains to the taxpayer or spouse. Data must be entered in this field to share information to and from the W2 screen.EIN
Enter the employer's identification number to share financial and non-financial data to and from the W2 screen. Data cannot be shared to or from the W2 screen if the either the
EIN
or T, S
fields are blank. This field is required to file electronically.Employer's name
Enter the employer's name. The name in this field is used as the unit description. This field is mandatory.
note
This field contains a linked custom fieldview, which enables you to automatically enter data in the corresponding employer address, city, state, and ZIP code fields. Click the down arrow and choose Edit Multi-field Custom Fieldview to open the Custom Fieldview dialog, in which you can enter or select a fieldview item for these linked fields.
Wage code
Enter
1
if the taxpayer is a minister, enter 2
if the taxpayer is in the military, enter 3
if the taxpayer received wages as a shareholder of an 1120S corporation involved in farming or as a fishing crew member, or enter 4
if the taxpayer is in the National Guard.note
- If1is entered in this field, wages entered in theWages, tipsfield are automatically reported on Clergy Worksheets 1 and 3. Additional data may be required in the Clergy screen, located in the Taxes folder, to accurately calculate exclusion, excess allowance, and ramifications to self-employment tax. For additional information, refer to the help for the Clergy screen by pressing F1 from any field in that screen. A minister for tax purposes is not covered by FICA and should not have Social Security or Medicare withholding. Please refer to IRS Publication 517 for more information.
- Excess allowances calculated on the Clergy Worksheets are automatically reported on Form 1040, line 1.
Standard / Non-standard W-2
Use this field to designate if the Form W-2 is standard or non-standard. The information is used for electronic filing and for completing Form 4852. In order to complete Form 4852, this field must contain
N
for Non-standard.Form 4852 determination of wages; efforts to obtain Form W-2 or Form W-2c
Enter an explanation describing how the W-2 amounts were determined and describe the efforts to obtain Form W-2 in the statements provided. Data must be entered in both fields to properly calculate Form 4852.
note
To complete Form 4852, the
Standard/Non-standard
field must contain an N
for Non-standard.Corrected
This field is used for electronic filing. Enter
X
if a corrected W-2 was provided for the W-2 being entered in the W2 screen.Current employer
Enter
X
if the W-2 is from the current employer. The following states use this field: Alabama and Pennsylvania. For more information, access the input screen help for the appropriate UltraTax CS state application by pressing F1 from within a state input screen.Common reporting agent
Enter
X
if the W-2 was issued by a common reporting agent (also called an IRC Section 3504 agent). If two or more W-2s have the same EIN and this field is marked, they will be considered separate employers for the calculation of excess social security and tier 1 RRTA tax withholding on Form 1040, Schedule 5. Do not enter X in this field if the W-2 is issued by a common paymaster as described in IRS Publication 15-A. W-2s issued by a common paymaster with the same EIN are considered to be issued by the same employer.Form 2555 allocation code
Use this field to classify the wage as foreign earned income reported on Forms 2555 and/or 1116. The Form 2555 Allocation Worksheet reports the allocation between U.S. and foreign earned income, including any related self-employment items. Foreign income earned before, during, and after the foreign assignment is reported, less any applicable exclusion, by Form 1116 as eligible for the foreign tax credit.
499R-2/W-2PR
Enter
X
only if a Form 1040-SS is being filed to indicate the source document is a Form W-2PR instead of a Form W-2.note
Both Form W-2 and Form W-2PR source documents are allowed for Form 1040-SS returns.
note
Electronic filing note:
The Form W-2PR for ELF, in View and then Form, has certain fields that can only be entered via form overrides. These fields are indicated with an asterisk (*) on the form, and are only used in the electronic file. (The fields are not used for tax preparation.)Community property designation
If the taxpayer is married, files a separate federal return, and resides in one of the following community property states - AZ, CA, ID, LA, NM, NV, TX, WA, or WI (or for registered domestic partners, files a Single or Head of Household federal return, and resides in CA, NV or WA) - use this field to identify whether or not the wages are community property. By default, a blank entry (i.e. no entry) is treated as community property and an entry of
N
as non-community property (i.e. separate property). W2 units indicated as community property will be allocated 50/50 to the taxpayer and the spouse when two separate clients are created via the Filing Status Optimization utility with the Split income according to Community Property rules
option enabled.note
- This field is disabled if a community property state return is not attached or the taxpayer's primary residence indicated on the 1040 screen is not a community property state.
- Any entry in this field will proforma to all subsequent years, if applicable.
W2 Facsimile
Enter the wage information directly from a Form W-2 in this section. If the client has received more than one W-2, enter the wage information in additional units of this input screen.
Control number
This field is required for electronic filing. Enter the control number.
State ID number
Enter the State ID number, as shown on the W-2, if there is state or local withholding.
note
- The IRS requires that this field be completed for electronic filing purposes.
- If the W-2 does not display a state ID number, enter the federal employer ID number in this field.
note
Indiana returns only:
The State ID number must be between 10 and 14 digits. If necessary, add leading zeros. For example, 12345678 should be entered as 0012345678. If the W-2 does not show a State ID number, enter the federal employer ID number in this field. This information is required by the Indiana Department of Revenue for returns processed electronically.Wages, tips
When you enter an amount in this field, regardless of the method of data entry, UltraTax CS automatically calculates Social Security wages, Social Security withholding, Medicare wages, and Medicare withholding based on IRS guidelines. Note that Social Security wages are used to calculate self-employment tax, when applicable. UltraTax CS also adds the wage amount to the state wages. You can override any of these calculated amounts, if needed.
SS wages / Medicare wages
UltraTax CS completes these fields automatically during data entry if the
Automatically complete FICA and Medicare wage (W2 screen)
box is marked in Setup, 1040 Individual, Other Return Options button, and then Other tab. You can override them here, if necessary.SS W/H / Medicare W/H
These fields complete automatically when data is entered in the applicable wage field. You can override them here, if necessary.
note
An additional Medicare tax of 0.9% on social security wages in excess of $200,000 is automatically included.
SS tips
This information is used to calculate self-employment tax, when applicable. Amounts entered for SS tips will also be used to calculate Form 4137.
Allocated tips
The amount here transfers to the Wages and salaries line on Form 1040, Page 2, to Schedule SE, when appropriate. If the taxpayer is not subject to self-employment tax, amounts in this field are used to calculate the amount of Social Security tax on unreported tip income on Form 4137.
Dependent care benefits
This amount is part of the calculation for Form 2441. If you enter an amount in this field and the Cr screen (in the Credits folder) does not have Form 2441 information, the amount reports as a taxable dependent care benefit on Form 1040, Page 2, line 1, Wages, salaries, tips, etc., and “DCB” prints on that line.
Employee's SSN
If the Social Security number on Form W-2 does not match the taxpayer’s identifying number in the 1040 screen, enter the Social Security number exactly as it appears on the taxpayer's copy of Form W-2.
note
For both paper and e-filing, a Social Security number is required on Form W-2; therefore, do not enter any other numbers or text (such as "Applied For", or "W7 Attached") in this field.
Nonqualified plans
The amount you enter here is treated as a reduction to qualifying earned compensation for purposes of the IRA contribution, earned income, child tax credits, and making work pay calculations.
Box 12
Use the attached statement to provide specific information required in Box 12. The available codes are listed in the table that follows.
note
Amounts automatically transfer to the appropriate line on the return, when applicable. See the Destination on Return column in the table that follows.
Code | Description | Destination on return |
|---|---|---|
A | Uncollected Social Security tax on tips | Form 1040, Schedule 4, line 62, reported as "UT"; Form 2210F; Schedule 8812; Child Tax Credit Worksheets; Excess Social Security & RRTA Tax Withholding Worksheet; Tax Projection Worksheet |
B | Uncollected Medicare tax on tips | Form 1040, Schedule 4, line 62, reported as "UT"; Form 2210F; Schedule 8812; Child Tax Credit Worksheets; Tax Projection Worksheet |
C | Cost of group term life insurance coverage over $50000 | N/A |
D | Section 401(k) contributions | Form 8880, line 2; Keogh/SEP/Simple Worksheet (when applicable) |
E | Section 403(b) contributions | Form 8880, line 2; Keogh/SEP/Simple Worksheet (when applicable) |
F | Section 408(k)(6) contributions | Form 8880, line 2; Keogh/SEP/Simple Worksheet (when applicable) |
G | Section 457(b) contributions | Form 8880, line 2 |
H | Section 501(c)(18)(D) contributions | Form 1040, Schedule 1, line 36; Form 8880, line 2; Adoption Credit Modified AGI Worksheet, line 5; IRA Worksheet; Keogh/SEP/Simple Worksheet; Student Loan Worksheet, line 4; Tuition and Fees Deduction Worksheet, line 3; Worksheet 1 for Social Security Recipients Who Contribute To an IRA, line 5 |
J | Sick pay not includable as income | N/A |
K | Tax on excess golden parachute payments | Form 1040, Schedule 4, line 62, reported as "EPP" |
L | Nontaxable part of employee business expense | Form 2106 |
M | Uncollected Social Security or RRTA tax on group term life insurance | Form 1040, Schedule 4, line 62, reported as "UT"; Form 2210F; Schedule 8812; Child Tax Credit \ Credit for Other Dependents Worksheets; Excess Social Security & RRTA Tax Withholding Worksheet; Tax Project Worksheet |
N | Uncollected Medicare tax on group term life insurance | Form 1040, Schedule 4, line 62, reported as "UT"; Form 2210F; Schedule 8812; Child Tax Credit \ Credit for Other Dependents Worksheets; Tax Project Worksheet |
P | Excludable moving expense reimbursements | Form 3903, line 4 |
Q | Nontaxable combat pay | Form 2441, Schedule 8812, Child Tax Credit \ Credit for Other Dependents Worksheets, Earned Income Credit Worksheets, General Sales Tax Deduction Worksheet |
R | Employer Contributions to Medical Savings Account | Form 8853, line 1; Form 8889 |
S | Employee salary reduction section 408(p) contributions | Form 8880, line 2, Keogh/SEP/Simple Worksheet (when applicable) |
T | Employer payments under adoption note
Also enter in the 8839 screen | Form 1040, Page 2, line 1, reported as "AB"; Form 2441, lines 4, 5, 18, and 19; Form 8815, line 9; Form 8839, line 22; PALMAGI Worksheet; Taxable Social Security Lump Sum Worksheets 1 & 4; Worksheet 1 for Social Security Recipients Who Contribute to an IRA, line 3; Wage Report |
V | Income from exercise of nonstatutory stock option(s) | N/A |
W | Employer contributions to health savings account note
Also include in the 5498SA screen, box 2, Total HSA/MSA contributions for 2024 and complete data entry for Form 8889. | Form 8889 |
Y | Deferral under sect 409A nonqual deferred compensation plan | N/A |
Z | Income under sect 409A nonqual deferred compensation plan | N/A |
AA | Designated Roth contribution to a section 401(k) plan | Keogh/SEP/Simple Worksheet (when applicable); Form 8880, line 2 |
BB | Designated Roth contribution to a section 401(k) agreement | Keogh/SEP/Simple Worksheet (when applicable); Form 8880, line 2 |
DD | Cost of Employer-sponsored health coverage | N/A |
EE | Designated Roth contribution to a section 457(b) plan | Form 8880, line 2 |
FF | Permitted benefits qualified small employer health reimbursement | Worksheet Q – QSEHRA Monthly Credit Amount, Part I, line 1 and/or Part III, column B |
GG | Income from qualified equity grants under section 83(i) | N/A |
HH | Aggregate deferrals under section 83(i) elections as of the close of the calendar year | N/A |
Statutory employee
Enter
X
only if the taxpayer is a statutory employee whose earnings are subject to Social Security and Medicare taxes but not subject to federal withholding. Enter the wages in the Wages, tips
field in this screen. These amounts transfer to the wages and salaries line of Form 1040, Page 2, and on the Salaries and Wages Report. If there are expenses to be claimed against this wage income, enter expense information in the C screen and select the correct W-2 in the W-2 unit # for statutory employee
field, or enter statutory wage amounts in the Statutory employee wages (Force)
field. The salaries and wages line of Form 1040 is reduced by the amount of statutory wages included on Schedule C and reports the net statutory employee wages after related expenses on Form 1040, line 12.Retirement plan
Enter
X
if the taxpayer is covered under a retirement plan. If this field is marked, the taxpayer or spouse is treated as covered by a qualified retirement plan for application of the AGI limitation when calculating the deductible IRA contribution. See the IRA screen located in the Retirement folder for additional information about IRAs.Other
Enter the code that represents the applicable Box 14, Other item, or use the fieldview to make your selection. The available codes are listed in the table that follows.
note
Amounts automatically transfer to the appropriate line on the return, when applicable. See the Destination on return column in the table that follows. Please see the state specific instructions for proper use of other codes provided.
Code | Description | Destination on return |
|---|---|---|
1 | Auto | N/A |
2 | Housing allowance | Form 2555 Worksheet; Form 2441; Child Tax Credit Worksheet; Earned Income Credit Worksheet; SE Earnings Worksheet; SE Health Worksheet; WI Schedule H, line 11f; WI Schedule FC, line 9n note
If 1 is entered as the wage code, this amount is reported on Clergy Worksheet 1. Additional data is required in the Clergy screen, located in the Taxes folder, to accurately calculate exclusion, excess allowance, and ramifications to self-employment tax. For additional information, refer to the help for the Clergy screen by pressing F1 from any field in that screen. |
3 | Medical insurance premiums | Schedule A, line 1 or Self-Employed Health Insurance Deduction Worksheet, line 1, when Form / Sch = K1 (S-Corporation) note
If shareholder health insurance premiums on the W2 include amounts paid for specified premiums (i.e. premiums purchased via the Marketplace), enter the type code, form, and unit on the related W2 box 14 to link the 1095A amounts with the correct activity. Any amounts entered in W2, box 14 for medical insurance are treated as nonspecified premiums. Therefore, if all premiums are specified premiums, the W2 box 14 code 3 amount column should be blank, while the type code, form and unit fields should remain to ensure the correct linking behavior to the 1095A. |
4 | Other reimbursed expenses | N/A |
5 | State disability insurance withholding | State postal codes CA, NJ, NY, RI, and WA: Schedule A, line 5a
All others state postal codes: Schedule A, line 6 |
6 | Strike pay | State postal code CA: California Form 3506, lines 4 and 5 |
7 | SUB pay | N/A |
8 | State unemployment fund contributions | State postal codes CA, NJ, PA and AK: Schedule A, line 5a All other state postal codes: Schedule A, line 6 NJ code 8 and code 39 amounts will be combined on the NJW2 screen as UI/WF/SWF |
9 | Union dues | N/A for federal returns |
10 | IRC Section 414(h) contributions | |
11 | IRC Section 125 flexible benefits prog | Michigan Household Income Other Nontaxable Income on Forms MICR, MICR-2, and MICR-7 |
12 | NYC member's health & welfare surcharge | N/A |
13 | Tier 1 RRTA tax withheld | Excess Social Security & RRTA Tax Withholding Worksheet; Schedule 8812; Child Tax Credit Worksheets; State Postal Code MO |
14 | Tier 2 RRTA tax withheld | State Postal Code MA; State Postal Code MO |
15 | Maine state retirement contribution | Maine Sch 1 and 2, line 1c |
17 | Nontaxable IRC Section 125: NY | |
18 | Educational assistance payments: MN, ND | MN: Included in household income: MNGen screen
ND: Addition to household income: NDAdj screen |
19 | RR Unemployment Act sick pay in W-2 box 1 | State Postal Code CA, IN, MO |
20 | Maryland state pick-up amount. Do not enter either the pick-up amounts in local withholding Box 19 or the state pick-up code "STP" for Box 20. | State Postal Code MD |
21 | Massachusetts pension contribution | Form 1, lines 11a and 11b.
Form 1 NR/PY, lines 15a and 15b. |
22 | Adjustment for resident or gross wages everywhere: NJ | Resident: 1040-NJ, page 2, Wages
Nonresident: 1040NR-NJ, Federal column, Wages Part-year resident: 1040-NJ, Page 3, included as "everywhere" wages with all "everywhere" income on line 8. |
23 | PY/NR only; adjustment for in-state source wages: NJ | Resident: N/A
Nonresident: 1040NR-NJ, Page 2, New Jersey Source wages Part-year resident: 1040-NJ, Page 2, Wages |
24 | Resident/PY only; Adjustment for other state taxable wages: AL | Alabama Schedule W-2, Additional taxable wages - other states |
25 | Medical Portion IRC 125 benefits Subj 2% gross Inc: NJ | Nonresident: 1040NR-NJ, Page 1
Part-year resident: 1040-NJ, Page 2 |
26 | Charitable Contributions (60% limitation) | Schedule A, gifts by cash or check |
27 | National Guard or Reserve Component Members ded: IN | IN Schedule 1 or Schedule D |
28 | Armed forces recruitment, sign up or retention bonus: KS | KS SCH S Part A, line A21 |
29 | KPERS contribution | Schedule S, line A2, Contributions to all KPERS (Kansas Public Employee's Retirement Systems) |
31 | Medical care ins pd, partial employer contribution: WI | Wisconsin Medical Insurance Worksheet, Worksheet 2 - Others, line 3 |
32 | Medical care ins pd, no employer contribution: WI | Wisconsin Medical Insurance Worksheet, Worksheet 2 - Others, line 5 |
33 | Eligible for small business deduction | Form IT SBD, Small Business Investor Income Deduction Schedule |
34 | Family leave insurance (FLI): NJ | Federal Schedule A, line 5a |
35 | Church employee/Clergy subject to MTA: NY | Self-employment income subject to the NY MTA tax. |
36 | Military wages attributable to overseas service: MD | Resident and part-year returns, Form 502, other subtractions, code 'P' and the Military Overseas Income Worksheet for any portion of military wages entered on the federal W2 screen. |
37 | Nonresident active service military pay: MN | Minnesota, Schedule M1M, Page 2 |
38 | Nonresident military income: MD | Form 502, line 12 |
39 | WF/SWF withholding: NJ | Schedule A, line 8 NJ code 8 and code 39 amounts will be combined on the NJW2 screen as UI/WF/SWF |
40 | Paid Family Leave program: CA, CT, MA, and NY | Schedule A, line 5a |
41 | IIM - Married DPR Wage adj | When two single returns are combined and an amount using code 41 is present, Box 1 wages in the combined return are reduced, not less than zero, by this amount. This imputed income married code is intended for CA, IA, IL, NY, and VT domestic partner returns. |
42 | IIM - Married DPR Income adj | When two single returns are combined and an amount using code 42 is present, the combined federal return automatically creates an Other adjustment to income equal to this amount. This imputed income married code is intended for CT, DE, and OR domestic partner returns. |
43 | IIM - Married DPR State adj | When two single returns are combined and an amount using code 43 is present, the combined federal return is not adjusted for the amount. Instead the state return is where the adjustment to federal income is made. This imputed income married code is intended for DC and HI domestic partner returns. |
44 | RRTA compensation | Form 8959, line 14 |
45 | Medicare RRTA tax withheld | N/A |
46 | Additional Medicare RRTA tax withheld | Form 8959, line 23 |
48 | Long-Term care premiums – Taxpayer | Schedule A, line 1 or Self-Employed Health Insurance Deduction Worksheet, line 2, when Form / Sch = K1 (S-Corporation) |
49 | Long-Term care premiums – Spouse | Schedule A, line 1 or Self-Employed Health Insurance Deduction Worksheet, line 2, when Form / Sch = K1 (S-Corporation) |
50 | Long-Term care premiums – Dependent age 40 & younger | Schedule A, line 1 or Self-Employed Health Insurance Deduction Worksheet, line 2, when Form / Sch = K1 (S-Corporation) |
51 | Long-Term care premiums – Dependent age 41 to 50 | Schedule A, line 1 or Self-Employed Health Insurance Deduction Worksheet, line 2, when Form / Sch = K1 (S-Corporation) |
52 | Long-Term care premiums – Dependent age 51 to 60 | Schedule A, line 1 or Self-Employed Health Insurance Deduction Worksheet, line 2, when Form / Sch = K1 (S-Corporation) |
53 | Long-Term care premiums – Dependent age 61 to 70 | Schedule A, line 1 or Self-Employed Health Insurance Deduction Worksheet, line 2, when Form / Sch = K1 (S-Corporation) |
54 | Long-Term care premiums – Dependent age 71 & older | Schedule A, line 1 or Self-Employed Health Insurance Deduction Worksheet, line 2, when Form / Sch = K1 (S-Corporation) |
56 | Statewide Transit Tax: OR | Schedule OR-A, line 5 excludes this amount |
For
California
returns: Amounts included in federal Schedule A, Line 5 for Code 5, State Disability Insurance, are reported as adjustments (reductions) to federal itemized deductions on the California return.Amounts included in federal Schedule A, line 5a for Code 8, State unemployment fund contribution, Code 34, Family leave insurance (NJ), and Code 40, Paid Family Leave program (CA), are treated as deductible for California purposes. Therefore, no adjustments are made to federal itemized deductions reported on the California return for these amounts.
For
New Jersey
returns, enter the W-2 reported other reimbursements that may be excluded when calculating wage income for New Jersey in the attached statement. Use code 4
to designate these amounts as excludable reimbursements. In addition, enter amounts withheld for New Jersey disability insurance (code 5
) and amounts withheld for the New Jersey Workforce Development Partnership Fund and the Health Care Subsidy Fund (code 8
). Excess contributions are calculated from the amounts entered here.For
New York
returns, use the attached statement to enter amounts for which New York requires an adjustment. Enter public employee 414(h) retirement contributions with code 10
. Enter the IRC 125 amount that was deducted or deferred under a flexible benefits program established by the City of New York with code 11
. Enter the amount deducted for health insurance and the welfare benefit fund surcharge with code 12
. These amounts appear as New York additions on Form IT-201/203 and if a city nonresident earnings tax return is being prepared, as additions to wages. If the amount that appears as public employee 414(h) retirement contributions should not be added back to New York income, use code 16
to designate the amount as nontaxable. Likewise, if the amount entered represents nontaxable IRC Section 125 flexible benefits, use code 17
to designate the amount as nontaxable to New York. Amounts coded 16
or 17
do not appear as New York additions on Form IT-201/203. the Form / Unit
field in this statement is not applicable to the UltraTax CS/1040-NY application. Leave this field blank. Use codes 16
and 17
for section 414(h) and section 125 amounts, respectively, that should not appear as additions to the New York return.For
Indiana
returns, for income on the federal W2 screen with wage code 2 (military) or 4 (National Guard), enter code 27
in Box 14
to enter the portion of military wages eligible for the National Guard or Reserve Component Members deduction to report on Indiana Schedule 1 or Schedule D.note
Codes
16
and 17
are reported on the federal return when applicable.For
Michigan
returns, items coded 11
, IRC Section 125 flexible benefits program, will be included in the nontaxable income calculation of household income used for Michigan credits.Entire family covered for full year with minimum essential health care coverage
Select
1 Yes
if everyone claimed on the tax return had minimum essential health care coverage for the entire year. UltraTax CS marks the Full-year health care coverage or exempt (see instr.) box on Form 1040, Page 1. Select 2 No
if anyone in the family did not have coverage for the entire year.This field is available on the W2, 1099R, SSA-1099, C, F, K1-3, and Coverage screens. If you make a selection in this field, no selection is required in any other input screen. Details of partial coverage or exemption from coverage can be entered on the Coverage screen in the Health Care folder. If this field is blank in all locations, the default is to no minimum essential coverage and sends a critical diagnostic.
note
Minimum essential health care coverage is defined in the Form 8965 instructions. Generally, minimum coverage is coverage that is part of a government-sponsored program, from an employer, or through a plan purchased in the individual market. For more information, see the Form 8965 instructions and Individual Shared Responsibility - Minimum Essential Coverage.
State and City Information
Enter the appropriate information in the following fields.
State
If you are processing a state return, enter the two-character abbreviation for the state to which this unit belongs. This code is used by the various state applications to help determine in-state and out-of-state amounts. The resident state will pick up all wages. The nonresident states only pick up wages designated with the nonresident state postal code.
note
A postal code entry is required for proper state processing.
State Use
Enter the code to designate the special circumstance with this W-2. The codes that are available in this field are specific to the state postal code entered in the
State
field. If state use codes are not applicable to the entered state, this field will be disabled (shaded) in most instances (see the following note for a description of exceptions). Enter a code as applicable for processing the 1040 state return. The state use codes and applicable states are listed in the table that follows.note
In the following table, states marked with an asterisk (*) denote state use codes that are available when that state's return is attached to the open client, even when that particular state postal code is not entered in the corresponding
State
field.Code | Description | State |
|---|---|---|
1 | Cost of Living Allowance (COLA) | HI |
2 | Wages of Native American who lives/works on reservation | AZ, CO, CT, IA, ID, KS, LA, MI, MN, MS, MT, ND, NE, NM, OK, OR, UT, WI |
4 | Active military qualified for deduction | IA, ID, LA, ME, MN, MO, MS, OR, VA, VT, WV |
5 | Excludable from total sources | CA* |
6 | Military reserve qualified for deduction | ID, HI, MN, ND, VT, WI |
7 | Compensation earned by patient with Hansen's disease | HI |
9 | Employee's Retirement System (ERS) | HI |
10 | Combat zone wages | NY, PA, VA |
11 | Box 11 qualifies for pension exclusion | NY |
12 | National Guard Deduction | OR, VA |
13 | Federal and/or state employee wages | VA |
14 | KPERS Disability | KS |
15 | Box 11 qualifies for government pension exclusion | NY |
16 | Active Military Separation | WV |
17 | Excludable from MA wages | MA* |
18 | Local wages qualify for county credit on IN return. Use this code to include the local wages in Box 18 in the calculation of the Indiana Credit for Local Taxes Paid Outside Indiana Worksheet. Use the INCr screen to force the amount to use in the calculation of the credit to offset county income tax. | KY, MI, MO, OH |
21 | Inactive duty military deduction | MO |
note
- For Iowa returns, enter State use code4in the W2 screen for wages of active duty military members. The appropriate adjustment for the taxpayer (or spouse, if applicable) is made on the other adjustments line of IA Form 1040.
- For Kansas returns, enter State use code14in the W2 screen for KPERS disability payments. UltraTax CS makes the appropriate adjustment on Kansas Schedule S.
- For Minnesota returns, enter State use code4in the W2 screen for wages of active military members who are stationed outside of their resident state and also have Minnesota withholding, or if the taxpayer received pay for federal active duty performed outside of Minnesota. Use code6for national guard and reservists who received state or federal pay for active service performed in Minnesota.
- For Vermont returns, enter State use code4in the W2 screen for wages of active military members who were stationed outside of Vermont. With State use code4entered, the appropriate adjustment is made on Vermont Form IN-113.
- For Vermont returns, enter State use code6in the W2 screen for wages of National Guard or U.S. Reserve training pay earned in Vermont. With State use code6entered, a portion of the taxpayer's wages are exempt and the appropriate adjustment is made on Vermont Form IN-113.
- For Virginia returns, enter:
- State use code4in the W2 screen for wages of qualified military service personnel who wish to claim the Military basic pay subtraction. The application makes the subtraction, using code38, if the taxpayer (or spouse, if applicable) qualifies.
- State use code10in the W2 screen for wages of qualified military service personnel who wish to claim the Combat zone subtraction. The application makes the subtraction, using code30, if the taxpayer (or spouse, if applicable) qualifies.
- State use code12in the W2 screen for wages that qualify for the National guard subtraction. The application makes the subtraction, using code28, if the taxpayer (or spouse, if applicable) qualifies.
- State use code13in the W2 screen for wages of a qualified federal or state employee. UltraTax CS makes the appropriate subtraction, using code39, if the taxpayer (or spouse, if applicable) qualifies.
State wages
Enter up to four items of wage information for state and local taxing authorities that are reported on Form W-2.
note
- New Jersey wages are calculated using state wage amounts with Postal CodeNJand adjustments entered as Code22and/or Code23. UltraTax CS does not calculate New Jersey wages by adding all state wage figures. If a New Jersey state wage amount is not present in the W2 screen, the federal wage amount will be used in conjunction with Box 14 code22amounts to calculate "everywhere" wages.
- Electronic filing: When processing a W-2 with more than one locality for a state, also enter the state postal code in Box 15 to accompany the additional localities. The local wage, code, and withholding information will not be included in the e-file record if the corresponding state postal code in Box 15 is blank.
State W/H
Amounts that you enter in these fields transfer to Schedule A as well as the applicable state and city returns.
Local wages
When Box 5 Medicare wages is entered or modified, if the State entered in the first line of the W2, Box 15 equals OH or PA, then the first line of Box 18, Local wages is automatically completed with the amount of Box 5, Medicare wages. If the State entered is not OH or PA but the first line of Box 20 has a locality code entered, then the value of Box 1 Wages is used to automatically complete Box 18 Local wages
Code
Enter a state postal code in the
State
field in box 15 to activate the locality codes in the corresponding Code
field. If locality codes are not applicable to the entered state, locality codes will not be available.Local withholding transfers to Schedule A, line 5 as city withholding for all codes with the following exceptions.
Code | Description |
|---|---|
27M | NYC 1127 payments to New York Form IT-196, line 21, as NYC 1127 payments. |
27T | NYC 1127 payments to Schedule A, line 5a, as NYC 1127 taxes. |
SDI | California state disability insurance, to Schedule A, line 5a, as State Disability fund withholding. |
SPU | Code "SPU" is used only on the 1099R screen city code box 14 so the pick-up reported on Form 1099R can be entered in box 15. Do not enter Maryland state pick-up using this local withholding code on the W2 screen. Pick-up reported on a W-2 must be entered in box 14 with state use code 20. |
VP | Voluntary Plan Disability withholding is not reported anywhere on the federal return. |
note
Pennsylvania local city withholding entered here will be transferred to the local city return being filed. If two city returns are being filed, use the
Payments allocated by amounts
field in UltraTax CS/1040-PA EITInc screen to allocate withholding to the appropriate Local Earned Income Tax return.note
Electronic filing note:
When processing a W-2 with more than one locality for a state, also enter the state postal code in Box 15 to accompany the additional localities. The local wage, code, and withholding information will not be included in the e-file record if the corresponding state postal code in Box 15 is blank.Ohio code
For Ohio School District withholding, enter the four-digit code, or press
F4
to view a list of taxing school district codes.note
Electronic filing note:
When processing a W-2 with more than one locality for a state, also enter the state postal code in Box 15 to accompany the additional localities. The local wage, code, and withholding information will not be included in the e-file record if the corresponding state postal code in Box 15 is blank.