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Deferred Comp on taxes question

Posted: Mon Jan 23, 2023 9:11 am
by Enjoyingthemiddle
Good morning,

Due to an acquisition my husbands employer paid out funds from a deferred compensation plan in 2022. The funds were not yet vested, however they made the decision to pay out all funds regardless. On the W-2 it shows up in box 14 Other and states “DEFRD XXXXX.XX” (the Xs represent the amount of the pay out).

I’d like to complete our own taxes in TurboTax as I typically do. When I import his W-2 it calls out this box and asks for a description and I’m unsure of what this should be. Also, is there anything else I need to do in addition to this when filing?

Please let me know if more information is needed to fully understand the situation. Thanks in advance for any insight!

Re: Deferred Comp on taxes question

Posted: Mon Jan 23, 2023 5:45 pm
by Duckie
Enjoyingthemiddle, welcome to the forum.
Enjoyingthemiddle wrote: Mon Jan 23, 2023 9:11 am On the W-2 it shows up in box 14 Other and states “DEFRD XXXXX.XX” (the Xs represent the amount of the pay out).
Does the amount in Box 1 include the amount in Box 14?
I’d like to complete our own taxes in TurboTax as I typically do. When I import his W-2 it calls out this box and asks for a description and I’m unsure of what this should be.
If it was a "Deferred Comp payout" just put that in Box 14 as a description, then the amount in the next Box 14 box, and Other (not classified) in the Category box.
Also, is there anything else I need to do in addition to this when filing?
Was the Deferred Comp considered a qualified or non-qualified plan?

Re: Deferred Comp on taxes question

Posted: Mon Jan 23, 2023 7:32 pm
by Enjoyingthemiddle
Duckie wrote: Mon Jan 23, 2023 5:45 pm Enjoyingthemiddle, welcome to the forum.
Enjoyingthemiddle wrote: Mon Jan 23, 2023 9:11 am On the W-2 it shows up in box 14 Other and states “DEFRD XXXXX.XX” (the Xs represent the amount of the pay out).
Does the amount in Box 1 include the amount in Box 14?
I’d like to complete our own taxes in TurboTax as I typically do. When I import his W-2 it calls out this box and asks for a description and I’m unsure of what this should be.
If it was a "Deferred Comp payout" just put that in Box 14 as a description, then the amount in the next Box 14 box, and Other (not classified) in the Category box.
Also, is there anything else I need to do in addition to this when filing?
Was the Deferred Comp considered a qualified or non-qualified plan?
Thank you for the welcome!

The amount in box 14 was included in box 1.

This was a non-qualified plan

Re: Deferred Comp on taxes question

Posted: Tue Jan 24, 2023 4:02 am
by FiveK
Is there also an amount in box 11?