Understanding Your Forms: W-2, Wage & Tax Statement

All rights reserved. Make Money Explore. If you have more than one job, for Social Security tax purposes, the cap still applies. That carries with it some significance and not only for tax reasons. J — The non-taxable portion of sick or temporary disability pay. The amount in the IRC box is treated on a pre-tax basis for federal income purposes. Access insights and guidance from our Wall Street pros.

What's in Box 12 of My W-2? A Guide Through The Tax Form Confusion - TheStreet

The number in Box 1 accounts for deductions and exclusions from income, such as k contributions or payments for the employee share of health-insurance premiums. Include this amount on the wages line of your return.

She hopes that the MoneyCrashers team can help you achieve your goals and live a great life. The taxable wages consist of the gross wages and other compensation paid to you during the year, including payments to the Health Buy-Out Waiver Program. This is to report to the employee the cost of employer provided healthcare.

It may limit your ability to get tax incentives for other retirement plans like an IRA. For informational purposes only, other boxes that may contain dollar amounts on your W-2 are: This number represents distributions from nonqualified retirement plans, which represent money earned in previous years, but on which tax was deferred.

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I am not a robot. The IRS has designated specific codes for these transactions and are defined as follows: Money Management Taxes. For questions regarding dependent care, retirement contributions, cost of group term life insurance, or cost of health care coverage, contact the Benefits Office at Below, we'll go through the W-2 box by box to give you a quick guide on how to use it.

If this number is higher than your eventual tax liability, you'll get a refund. What are Taxable Wages? Uncollected social security or RRTA tax on tips. This week, I'll be dissecting some of the most basic tax forms for you. Pension loan repayment deductions are not included.

W-2 Frequently Asked Questions () Office of Business Operations

Most employees pay 1. Yes, that's a lot of paperwork. Follow DanCaplinger. The credit card offers that appear on this site are from credit card companies from which MoneyCrashers. Employer's name, address, and ZIP code Your employer's address for tax reporting purposes. See you at the top! HH — Aggregate deferrals under section 83 i elections as of the close of the calendar year. This tax form is deceptively simple, but it holds the key to essential facts that you'll need in preparing your tax returns.

Account Preferences Newsletters Alerts. Box 11 is used to report amounts which have been distributed to you from your employer's non-qualified deferred compensation plan this amount is taxable. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages.

What do the W-2 Boxes and W-2 Form Codes mean?

Your contributions shown in Box 14 are not subject to federal income tax, but are subject to FICA social security and Medicare , state, and local taxes. Next article. Elective deferrals and employer contributions including non elective deferrals to a section b deferred compensation plan.