Public employee 414(h) retirement contribution not equal to the amount on W-2.
Explanation:
This error occurs when the 414(h) retirement contributions (contributions made to a public retirement system) entered on the tax return do not match the amount reported on the taxpayer's Form W-2, Box 14. These contributions are mandatory for many public employees (e.g., teachers, police officers) and are typically pre-tax, reducing the taxpayer's taxable wages.
Possible Causes:
Incorrect Entry:
The 414(h) amount on the tax return was entered incorrectly or does not match the value reported on the W-2.
Missing Data:
The 414(h) contribution information from Box 14 of the W-2 was not entered on the return.
W-2 Error:
The employer incorrectly reported the 414(h) contribution amount on the W-2.
State-Specific Issue:
Some states (e.g., New York) require separate reporting of 414(h) contributions, and discrepancies between the state and federal reporting may cause this error.
Solution Steps:
1. Review the W-2 Form:
Check Box 14 of the W-2 for the 414(h) retirement contribution amount.
Confirm that this amount has been entered correctly on the tax return.
2. Ensure Proper State Reporting:
If the taxpayer resides in a state that requires separate reporting for 414(h) contributions (e.g., New York):
Verify that the 414(h) amount has been subtracted from taxable income on the state return but not subtracted for federal purposes (since it’s already pre-tax at the federal level).
3. Correct Data Entry Errors:
Update the tax return to ensure the 414(h) contribution matches the amount on the W-2, Box 14.
If there are multiple W-2s, ensure the 414(h) contributions from all W-2s have been included in the correct totals.
4. Confirm Employer Reporting Accuracy:
If the W-2 appears to have incorrect or missing 414(h) information:
Contact the employer for a corrected W-2 (Form W-2c).
If the employer confirms the W-2 is correct but the reported amount seems inconsistent, include an explanation with the return when filing by mail.
5. Double-Check Tax Software or Forms:
If using tax software, ensure that the 414(h) amount is entered in the correct section of the state tax form (often under adjustments or state-specific items).
Example (for New York Residents):
Federal Return:
The 414(h) contributions are already pre-tax and should not be manually subtracted.
State Return (NY):
Subtract the 414(h) contributions to reduce New York taxable wages.
If Problem Persists:
Manual Submission:
If the issue cannot be resolved electronically, consider filing the return by mail with a note explaining the discrepancy.
Contact State Tax Authority:
If the error involves state reporting, reach out to the state tax department for further guidance.
Verify Employer's Reporting:
Ensure that the employer correctly reported the 414(h) amount in the W-2.