I'm trying to figure out how I paid $867.24 to socical security tax W/H out of $13,987.76 Socical security wages, when my total wages for the year, as stated on my W2, was listed as $12,427.76 with federal income tax W/H of only $302.00. Also, the W2 from my other job (which was held for part of the year) is showing the same scenario. How can my W2 list my SS wages as higher then my total wages?
2007-02-21 13:38:50 · 6 answers · asked by jpuff_pchu 1 in Business & Finance ➔ Taxes ➔ United States
If you paid for Health Insurance, Contributed to a Retirement plan, those are taken from your pay on a pre tax basis, which means that they are not taxable. these are shown in box 14 of your W2
Apparently you are having the minimum amount of Federal Taxes withheld. you might want to adjust your W4 through your employer if you owe on your 2006 return
2007-02-21 13:45:48 · answer #1 · answered by Anonymous · 2⤊ 2⤋
Usually, this happens when a person has a 401K. Look in box 12 and see if there's a code letter D, with an amount beside it. That's the code for a 401K. The wages are treated differently by the Social Security Administration, when you have a retirement plan where you work.
Also, there should be a list of the box 12 codes on the back side of the W-2.
You'll also notice that the Medicare wages reflect these same differences.
2007-02-21 18:04:25 · answer #2 · answered by Peggy K 5 · 0⤊ 2⤋
SS wages are total wages for the year, period. The Box 1 wages take into account any pre-tax deductions such as retirement plans, cafeteria plans, insurance premiums, etc. That's a good thing because it means that in the end, you end up owing Uncle less in taxes.
Ain't pre-tax deductions grand?
2007-02-21 13:53:10 · answer #3 · answered by Carlover29 3 · 2⤊ 2⤋
part of your wages must have not been subject to social security taxes. I've seen this NUMEROUS times for clients. Don't complain - you save some money!
This happens a lot when tax payers reach the SS max. There is no max on medicare.
2007-02-21 14:08:42 · answer #4 · answered by Dizney 5 · 0⤊ 2⤋
You must have had some kind of deduction(s) that are pre-tax for federal wages but not for social security. 401K and pre-tax medical insurance are common examples.
2007-02-21 13:46:02 · answer #5 · answered by Brian G 6 · 4⤊ 2⤋
it depends on how and what you filled out on the W4 when you started working at whereever it is you work or worked
2007-02-21 13:42:23 · answer #6 · answered by Joe Capo 5 · 0⤊ 5⤋