2007-01-26 19:30:27 · 5 answers · asked by ♥Ta Loca♥ 4 in Business & Finance ➔ Taxes ➔ United States
I LIVE IN CA IF THAT HELPS
2007-01-26 19:30:58 · update #1
Does this count as like medical insurance or could it be for the union dues that I pay...
At my place of employment we are required to either join the union for a monthly fee or pay a higher fee to not be in the union??
2007-01-27 10:19:08 · update #2
Section 125 covers what are called cafeteria employee benefit plans.
Under section 125, employee contributions toward the costs of the benefits can be done on a pre-tax basis. That means that the deductions from your paycheck for those contributions are not part of your salary and wage base for income and FICA tax purposes.
2007-01-27 00:20:47 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Less Sec 125
2016-11-11 07:05:30 · answer #2 · answered by ? 4 · 0⤊ 0⤋
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If I remember correctly, you don't do anything with the Section 125 amount as it is a pre-tax deduction on his paycheck. If your husband made $50,000 in 2007 and he had Section 125 of $5,000 then his W-2 in box one, two and three should say $45,000. You pay less tax because you pay SS & MC on $45,000 instead of $50,000 and your taxable income is based on $45,000, not $50,000. It may not really have any impact on your refund because your withholding would also be calculated on $45,000.
2016-04-01 03:30:59 · answer #3 · answered by Anonymous · 0⤊ 0⤋
is sec 125 a an ira contribution?
2017-02-09 14:51:30 · answer #4 · answered by QueenBee 1 · 0⤊ 0⤋
See a tax professional and save youself a lot of grief.
2007-01-26 20:06:13 · answer #5 · answered by Bullfrog21 6 · 0⤊ 2⤋