Form W-2 Tax question-Is my W-2 incorrect?
In box 1 for the wages is a different number than box 3 and 5 for SS and Medicare wages. I have not exceeded the $100,000 plus check for SS and Medicare for 2007. I see that my IRA contribution in box 12a plus the wages contained by box 1=the wages in box 3 and 5. So, when I complete my return I can assume that since the contribution to my IRA is not taxable the lower amount contained by box 1 has already figure this.
Here is the issue though, as I'm preparing my return, I notice that I can enter my contributions to the IRA as a conclusion. It appears my W-2 already records this as a estimate. If I enter the deduction separatly on my return, it seem to me I am receiving the speculation twice.
I'm not sure what is going on here. Any advice?
Answers: You're "IRA" (or 401k) contribution is already deduct from your taxable w-2 income. If you enter it again, you will, in reality, have doubled up on it.
Contributions to 401k's or IRA's through your employer are singular tax deductible from state and federal tariff... You are still taxed on those amount by SS and Medicare. That's why those boxes differ from box 1. You W-2 is correct.
enter your w2 newly as is. and yes your ss and medicare wages will be different after your wages if you have an ira or retirement. the system will automatically distribute you the credits you deserve
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Here is the issue though, as I'm preparing my return, I notice that I can enter my contributions to the IRA as a conclusion. It appears my W-2 already records this as a estimate. If I enter the deduction separatly on my return, it seem to me I am receiving the speculation twice.
I'm not sure what is going on here. Any advice?
Answers: You're "IRA" (or 401k) contribution is already deduct from your taxable w-2 income. If you enter it again, you will, in reality, have doubled up on it.
Contributions to 401k's or IRA's through your employer are singular tax deductible from state and federal tariff... You are still taxed on those amount by SS and Medicare. That's why those boxes differ from box 1. You W-2 is correct.
enter your w2 newly as is. and yes your ss and medicare wages will be different after your wages if you have an ira or retirement. the system will automatically distribute you the credits you deserve