dmangelli
Level 2

Code W on W-2 shows $4000. ProSeries carries that amt to form 8889S as all contributed by employer but employer did not contribute any money. Client loses $1000 deduction and has to pay tax on $1000. This doesn't make sense. Client should be able to deduct full $4000 contibution she made and not be penalized for excess contribution.

 

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