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#1 |
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Registered User
Join Date: Nov 2008
Location: SE PA
Posts: 7
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Validating W-2 Income
I am trying to validate my W-2 Wages (BOX 1) by taking my gross pay from my last pay stub and subtracting out the pre-tax items. I am off by several hundred dollars. Here is what I am doing.
Gross From Last Pay Stub - Medical Reimbursement Acct - Medical Prems - Prescription Prems - Vision Prems - 401k Contribs (including catch-up) Should = Box 1 Wages The answer I get is several hundred dollars less than what is reported in BOX 1. I don't have any other deducts that match the difference and there isn't any obvious combination of deducts that match the difference. I live in PA and they have different rules on what isn't taxable but I wind up with the exact same difference when I try to reconcile the PA wages in BOX 16. Any ideas? |
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#2 |
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Registered User
Join Date: Oct 2001
Posts: 1,586
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Dad1956,
Box 1 is your taxable income. You do not mention SS (box4) and medicare (box 6) taxes. these would be included in your gross income. Box 5 should match your gross income. The medical reimbursement account is not taxable when used to pay for qualified medical expenses. I would think your medical premiums, prescription premiums and vision premiums would be after tax deductions. I know mine are. These amounts should be included in the box 1 amount. Do you have any amounts in box 14? These amounts are normally included in the box 1 amount. But if you receive earned income credit throughout the year, that is included here too. This amount is not taxable income but shows up on your 1040 line 60. PA taxes your 401k contributions in the year you make the contribution. This allows the qualified distributions from your 401k to be free from PA tax. So your PA wages should be the same as the medicare wages shown in box 5. |
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