It is telling me that I owe taxes for the first time.I received an adjusted W2 that says 'Less Cafe 125'. What does this mean and does is that what's affecting my return?

Forum|Forum|5 years ago
May 15, 2021
1 reply
0 views

I received two W2s from my employer. One is original, the other has adjusted numbers in the area above where my name and information is at. It now includes a 'Less Cafe 125' dollar amount in between what appears to be how much I made last year and the amount of reported wages. Can you explain to me what that is and whether or not its affecting my return? I owe taxes for the very first time and I'm a little confused as to how the correct amount of taxes wasn't taken from my paychecks.

TurboTax Free Edition Online

ColeenD3

Level 15

You need to discuss this with your employer.

A cafe 125 plan:

Under a cafeteria, or Section 125, plan, you pay for your employer-sponsored benefits with pretax money. Your employer deducts your payments from your wages before withholding certain taxes. Your employer doesn't include your pretax payments in your taxable wages on your annual W-2. Cafeteria Plans