What boxes should match on W-2?
Table of Contents
What boxes should match on W-2?
If you don’t have any pretax deductions from your wages like a 401k, then they should be the same. If you have a pretax deduction, box 1 will be lower than boxes 3 & 5.
What is a box on W-2?
Box 1 “Wages, tips, other compensation”: This is federal, taxable income for payments in the calendar year. The amount is calculated as YTD earnings minus pre- tax retirement and pre-tax benefit deductions plus taxable benefits (i.e., certain educational benefits).
What is the W code in box 12?
Code W in Box 12 of your W2 indicates that you have an employer-sponsored Health Savings Account and that there was money deposited into your HSA through the payroll system at work. Code W opens up Form 8889, Health Savings Accounts, on your tax return.
Are boxes 1/3 and 5 supposed to be the same on W-2?
Question: Why doesn’t Box 1 match Box 3 and Box 5? Answer: Box 3 and Box 5 include your tax-deferred retirement contributions, Box 1 does not.
Why are boxes 1/3 and 5 different on my W-2?
However, depending on the level and source of income, the amount in these three boxes could be very different. Box 1 includes income subject to federal income tax. Box 3 includes income subject to employee Social Security tax. Box 5 includes income subject to Medicare tax.
Why is Box 1 and Box 5 different on W-2?
The amount in Box 1 is also going to be subject to Social Security and Medicare taxes, which means it will be included in Boxes 3 and 5. Box 5 includes income subject to federal income tax (Box 1) as well as income that is not subject to federal income tax. This is the amount subject to Medicare tax.
What are boxes 12a and 12b on W-2?
The W-2 box 12 codes are: A – Uncollected Social Security tax or Railroad Retirement Tax Act (RRTA) tax on tips. Include this tax on Form 1040 Schedule 2, line 13. B – Uncollected Medicare tax on tips.
Is Code W on W-2 deductible?
“Your payroll deductions for the HSA account will be shown on your W-2 in Box 12, marked code ‘W’. Because your payroll deductions were taken pretax, they are considered ’employer contributions’ and are to be entered on Line 9 of form 8889.
What does pre tax in Box 14 mean?
Your W-2 Box 14 lists your pre-tax (before income taxes are taken out) benefits. Box 14 on Form W-2 is a catch-all for all kinds of things. Enter the descriptions and amounts listed. If you don’t know what some of these pre-tax benefits are, contact your employer/Human Resources personnel and they could inform you.
Do I have to put Box 14 on my taxes?
Generally, the amount in Box 14 is for informational purposes only; however, some employers use Box 14 to report amounts that should be entered elsewhere on your return.
Does Box 14 on W-2 affect taxes?
In most cases, the information that your employer lists in Box 14 of your W-2 does not affect your income tax return. In fact, for many Box 14 entries, the IRS does not even provide a place for it to get reported on your return forms.
Why are Box 1 and Box 5 different?
Box 1 (Wages, Tips and Other Compensation) represents the amount of compensation taxable for federal income tax purposes while box 3 (Social Security Wages) represents the portion taxable for social security purposes and box 5 (Medicare Wages) represents the portion taxable for Medicare tax purposes.
