If I earn a certain amount of money and have a third of it taken out before taxes for health care, dental, vision, 401K, and a few other things, is my annual income the original amount or the amount left after deductions?
In other words can I legally claim that I earn 1/3rd less than my original amount before deductions?
2007-11-30 02:10:06 · 8 answers · asked by Traveler 4 in Business & Finance ➔ Taxes ➔ United States
Maybe I put this in the incorrect place. What I want to know is if after I do my taxes the correct way, when applying for other benefits, can I claim the after deductions as my income?
2007-11-30 02:28:15 · update #1
For things like student loans and other benefits, they want the real income you made before all the taxes got taken out. Then, depending upon what your applying for, they will apply a formula to estimate what that gives you to spend or ask specifically for various things you pay for. Many, in fact, will ask for amounts from different lines on your last tax return.
2007-11-30 05:12:57 · answer #1 · answered by Knightly 2 · 1⤊ 0⤋
Your annual income for tax purposes is your gross income. A few things like 401k and some health care premiums, and flexible spending account amounts, are taken out before taxes, so your income for tax purposes would exclude those.
You'll get a W-2 and it will show the amount of income you have to claim for taxes. The amounts for 401K and other excludable items won't be on line 1 of the W-2, the amount of your wages you claim for tax purposes.
2007-11-30 10:28:03 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
On your taxes you claim the amount on the W2 form which should be the amount less the money taken out for health care and 401K.
2007-11-30 10:14:13 · answer #3 · answered by countryguyhfc 5 · 2⤊ 0⤋
only if you want to go to jail. Your employer reports the gross salary paid to you on a W-2. This amount is reported to the IRS - if you report something different on your tax return, you will get audited and may have to pay penalties for filing a false return
2007-11-30 10:14:36 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Since your question appears under Taxes, I assume you want to know if you can put the reduced amount on your tax return as income.
Why would you even think that was legal?
2007-11-30 10:15:43 · answer #5 · answered by Edward G 6 · 0⤊ 1⤋
You have to claim the whole amout befor anything is taken out.
2007-11-30 10:18:19 · answer #6 · answered by Brenda 4 · 0⤊ 1⤋
CountryG gave the right answer. Ignore the others.
VKJ
2007-11-30 10:21:44 · answer #7 · answered by VKJ 2 · 0⤊ 2⤋
Short answer: No.
2007-11-30 10:20:13 · answer #8 · answered by Bostonian In MO 7 · 0⤊ 0⤋