Question

W-2 concern

Forum|Forum|5 years ago
February 22, 2021
2 replies
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I got my W-2 from My employer and the income listed in Boxes 1, 3, and 5 is less than the total gross income YTD shown on my last paystub in 2020. This is a $25,000 difference. It appears to be my total gross income minus pre tax deductions for Health, Dental, and Vision insurances. This is different from my previous W-2s. Is it OK to use this W-2 or should I ask my employer for a new one? Please advise.

Thanks

E

ErnieS0

It’s always good to double check with your employer if you have a question about your W-2.

W-2s prepared by payroll companies are almost never wrong unless your employer provided the wrong information.

The IRS computer matches off your W-2, not your payroll stubs, so they will expect to see the same numbers from your W-2 on your tax return so use the numbers from your W-2 after verifying with your employer.

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O

Opus 17

Employee

The point of a pre-tax deduction is that it is subtracted from your wages before tax is computed. (Although $25K for employer health insurance sounds really high.). Contributions to a qualified retirement plan such as a 401(k) would be subtracted from box 1 but not boxes 3 and 5.

Your W-2 sounds correct based on what you have explained. If your pre-tax deductions were included in your box 1, 3 and 5 wages in prior years, those years may have been wrong.

And, since your medical insurance premiums are pre-tax, you can't list them as an itemized tax deduction. You can't subtract something from your taxable income that is not included in your taxable income to begin with.