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Taxes for Excess Golden Parachute Payments are reported to the IRS on Form 1040, Line 60. TaxAct supports the entry of excise tax on excess golden parachute payments reported on Form W-2, Box 12, Code K and excess golden parachute payments reported on Form 1099-MISC, Box 13.

Per the IRS Instructions for Form 1040, page 53:

9. Golden parachute payments. If you received an excess parachute payment (EPP), you must pay a 20% tax on it. This tax should be shown in Box 12 of Form W-2 with Code K. If you received a Form 1099-MISC, the tax is 20% of the EPP shown in Box 13. Identify as "EPP".

If you received a Form W-2, with the excise tax listed in Box 12 with Code K, to enter this into TaxAct, please do the following:
  1. From within your TaxAct return (Online or Desktop), click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal 
  2. Click Wages and Salaries to expand the category and then click Wage income reported on Form W-2
  3. Click Add to create a new copy of the form or Review to review a form already created
  4. Click Quick Entry or Step-by-Step Guidance
    1. If you select Quick Entry, fill in the form to match your paper copy of Form W-2 and be sure to scroll down to answer questions.
    2. If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter or review the appropriate information.

If you received a Form 1099-MISC with the excess payment listed in Box 13, to enter this into TaxAct, please do the following:

  1. From within your TaxAct return (Online or Desktop), click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal  
  2. Click Form 1099-MISC to expand the category and then click 13 - Excess Golden Parachute Payments
  3. On the following screen, select the appropriate form, then continue until you reach the screen titled Form 1099-MISC - Miscellaneous Income
  4. Enter the amount under the applicable taxpayer's column next to the field titled 13 - Excess golden parachute payments
The TaxAct program will automatically calculate the 20% tax based on the amount entered on Form 1099-MISC, Box 13 and transfer the tax amount to Form 1040, Line 60. When you print the return, you will see "EPP" and the amount on Line 60.


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