Schedule 2 (Form 1040) - Items That Flow to Line 8
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If your employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in Box 1 of Form W-2 Wage and Tax Statement. Also, it is shown separately in Box 12 as code "C."

Box 12 will also show the amount of uncollected Social Security and Medicare taxes on the excess coverage, with codes "M" and "N." You must pay these taxes with your income tax return. When the amounts and codes are entered on Form W-2 in the program, the amounts will automatically transfer to Schedule 2 (Form 1040) Additional Taxes, Line 8. The text "UT" and the total amount of the taxes will be printed on the dotted line next to Line 8 when you print your return.

Additional Information

Per IRS Instructions for Form 1040 and Form 1040-SR, on page 97:

10. Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. This tax should be shown in box 12 of Form W-2 with codes A and B or M and N. Identify as “UT.”

Per IRS Instructions for Form W-2, starting on page 7:

A—Uncollected social security or RRTA tax on tips. Include this tax on Form 1040 or 1040-SR. See the Instructions for Forms 1040 and 1040-SR

B—Uncollected Medicare tax on tips. Include this tax on Form 1040 or 1040-SR. See the Instructions for Forms 1040 and 1040-SR.

On page 9:

M—Uncollected social security or RRTA tax on taxable cost of group term life insurance over $50,000 (former employees only). See the Instructions for Forms 1040 and 1040-SR.

N—Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (former employees only). See the Instructions for Forms 1040 and 1040-SR.

Note. If this text is applicable to your return, determined by the information entered, the TaxAct program will automatically place the text in the correct location on the return. The text will appear on the printed (or print previewed) form, but is not visible on the screen view of the form (only available to users of the Desktop version of the program).

Schedule K-1 (Form 1065) Partner’s Share of Income, Deductions, Credits, etc. - Box 20 Code AH

Interest and additional tax on compensation deferred under a section 409A nonqualified deferred compensation plan that doesn't meet the requirements of section 409A. See section 409A(a)(1)(B) to figure the interest and additional tax on this income. Report this interest and tax on Schedule 2 (Form 1040), Line 8. This income is included in the amount in Box 4, Guaranteed payments.

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