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Whit26
New Member

Why is box 1 amount way higher than payroll if no benefits were being taken out? Even with taxes added to payroll it’s still too much

The company I work for was bought out by another company last year. My old employer paid my salary for January and 1 paycheck in February. When I got my W-2 from that short period, box 1 seems to be much higher than what I actually made. No benefits were coming out at that time - only taxes were withheld. But when I add every up I’m still coming out way under what is reported on my W-2. How does that work?
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2 Replies
ThomasM125
Employee Tax Expert

Why is box 1 amount way higher than payroll if no benefits were being taken out? Even with taxes added to payroll it’s still too much

It may be the wrong amount entered in box 1 or it may be including income that you are not considering, like expense reimbursements for auto use or travel. Also, if you sold company stock you may see an addition to your income for the amount of the discount you received on the purchase of it.

 

You may see a notation in box 14 explaining what may have been added to your income.

 

If you can't reconcile the amount in box 1 on your W-2 form, you will have to contact your employer for a schedule that shows how the amount was calculated.

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Why is box 1 amount way higher than payroll if no benefits were being taken out? Even with taxes added to payroll it’s still too much

Did they maybe pay you for some December time in January?  

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