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April 6, 2025
Question

Medicare wages in Box 5 on my Form W-2 are greater than your PA wages in Box 16.

  • April 6, 2025
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1 reply

LindaS5247
April 6, 2025

The most common reason why your Medicare wages may be higher than your state wages is due to a 401(K) contribution (Form W-2, Box 12, Code D) or other pre-tax retirement plan contributions.  They are subject to Medicare taxes but not to federal or state income taxes.

 

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