What are the 12 boxes on W-2?

What are the 12 boxes on W-2?

W-2, Box 12 Codes

What is difference between box 1 and box 5 on 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.

What is the difference between W-2 Box 1 and Box 3?

The numbers in Box 1 and Box 2 help determine an employee’s tax refund or liability. Most benefits that are exempt from federal income tax are not exempt from Social Security tax. Box 3 reports how much money an employee earned that was subject to Social Security taxes during the year.

Why does W-2 have 4 boxes?

Box 4 shows the total of Social Security taxes withheld for the year. Unlike federal income taxes, Social Security taxes are calculated based on a flat rate. The rate is 6.2%. The amount in Box 4 should, then, be equal to the amount in box 3 times 6.2%.

What is D and DD on my W-2?

Box 12 amounts with the code DD signify the total cost of what you and your employer paid for your employer-sponsored health coverage plan. Code DD amounts are for informational purposes only—they don’t affect the numbers in your tax return.

Do I have to report Box 12 W on my tax return?

The amount with code “W” in box 12 in your W-2 is the sum of the contributions your employer made and that you made through a payroll deduction scheme. However, the IRS, by default, assumes that these contributions are taxable until you complete the form 8889.

Which box on my W-2 is my actual income?

Box 1

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 are boxes 3 and 5 on W-2?

Box 3 — Shows your employee wages subject to Social Security tax, which could be different from what’s reported on Box 1. Box 4 — Shows the amount of Social Security tax withheld from your pay. Box 5 — Shows your wages subject to Medicare tax.

Why is Box 3 higher than box 1 on my W-2?

Box 3 shows your total wages subject to the Social Security tax. This figure is calculated before any payroll deductions which means that the amount in box 3 could be higher than the number reported in box 1, as in my example.

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.

What goes in box 3 of W-2?

Box 3: Social Security wages. Box 3 reports the total amount of wages subject to the Social Security tax. For 2010, the Social Security tax is assessed on wages of $106,800 or less. This limit is called the Social Security wage base.

What is C in box 12 on W-2?

C: Taxable cost of group-term life insurance. You received group-term life insurance valued at more than $50,000 from your employer. The amount is also reported in Boxes 1, 3 and 5 of your W-2 and appears in Box 12 for your information only.

What does code C mean on W-2?

taxable cost of group-term insurance over
Box 12 with a code c is the taxable cost of group-term insurance over $50,000. If you had group term life insurance through your workplace, the premiums for any value over $50,000 become taxable income to you and are included in box 12. Enter your W-2 form with the box 12 code C in your tax return.

Does Box 12 on W-2 affect taxes?

What do boxes 12a and 12b on W-2?

Does my W-2 show my gross income?

Typically, the gross pay is not found on the Form W-2 because of the various pretax deductions. Instead, the gross pay can be found on the employee’s final pay stub for the year.

Does my W-2 show how much I paid for health insurance?

Your health insurance premiums paid will be listed in box 12 of Form W2 with code DD.

What is in Box 5 of W-2?

Box 5 “Medicare wages and tips”: This is total wages and tips subject to the Medicare component of social security taxes. Box 6 “Medicare tax withheld”: This is Medicare tax withheld from your pay for the Medicare component of social security taxes. The rate is 1.45% of the Medicare wage base.

Why is Box 1/3 and 5 the same?

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.

What is included in Box 5 of W-2?

What does box 1 of W-2 include?

Box 1 shows your total taxable wages, tips, prizes and other compensation, as well as any taxable fringe benefits. It does not include elective deferrals to retirement plans, pretax benefits or payroll deductions.

What does G mean in Box 12 of W-2?

G. Elective deferrals and employer contributions (including non-elective deferrals) to a section 457(b) deferred compensation plan.

What is DD tax return?

Where is Box D on my W-2?

Form W-2 (wage statement) Box D is called the Control Number field. It is usually located below or near the Employer’s Name and Address, but you may have to look very carefully for it, as it can occasionally be in a different place. Sometimes there is no Box D Control Number at all.

Can I leave Box 12 blank?

If your box 12 on your w2 is blank, leave the Turbotax box 12 blank. Do not put zero or anything else in it, leave it totally blank.