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Which line should be used for allowed regular IRA contribution when W-2 Line 1 [>$6,500] is larger than line 3 [<$6,500] due to health insurance paid for >2% shareholder?

 
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dmertz
Level 15

Which line should be used for allowed regular IRA contribution when W-2 Line 1 [>$6,500] is larger than line 3 [<$6,500] due to health insurance paid for >2% shareholder?

From IRS Pub 590-A, What is Compensation?:

The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans).

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dmertz
Level 15

Which line should be used for allowed regular IRA contribution when W-2 Line 1 [>$6,500] is larger than line 3 [<$6,500] due to health insurance paid for >2% shareholder?

From IRS Pub 590-A, What is Compensation?:

The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans).

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