In TurboTax Deluxe when filling out State Taxes for Pennsylvania there is a screen that says "Any Special Pennsylvania W-2 Situations." One choice that applies to me is "The Medicare wages in Box 5 on your Form W-2 are greater than your PA wages in Box 16." The next screen in Turbo Tax says I have to send in my W2 form and explain why this case is true. On my W2, Line 5 (Medicare Wages) is greater than Line 16 (State Wages) by the amount shown for letter C in Line 12a. Letter C represents Taxable costs of group-term life insurance over $50,000. Does this mean that my Medicare Wages are higher than state wages because Group Term Life Insurance is taxable for Medicare Wages but not taxable for PA State Wages and is this what I would explain for an additional information statement in Turbo Tax?
