Thanks Texas Roger, this is helpful. Couple of follow up questions:
1) This means that amount shown in Box 1 of the W2 form (wages), includes both amounts shown in boxes 4 and 6 (i.e. Social Security and Medicare tax withheld). In other words, the amount shown in Box 1 has not been reduced by the amount of Social Security and Medicare tax withheld, is this correct?
2) If (1) above is correct, then it means that there is a double taxation (i.e. SS and Medicare taxes, and federal tax applied over the same amount shown in box 1 of the W2 form), is this correct?
3) Different but related: is the amount of money put aside in an FSA account to pay for child and dependent care expenses deducted from the taxable income used to calculate Social Security and Medicare taxes? In other words: [taxable income used to calculate SS and Medicare taxes] = [wages shown in box 1 of W2] less [amount of money put aside in an FSA account to pay for child and dependent care expenses]?
Appreciate any information you can share. Thanks!
