box 5 ( medicare wages and tips) is greater than state wages and tips , box 16 (PA) by 5$ only. Do I have to submit my W2 and additional statement with my PA return?

[sabyasachi2321]

The box 5 amount is only 5$ more than the box 16 amount. I don't participate in 401K. Turbotax is asking me to include a W2 copy and an additional statement with my return. I'm not sure what to put in this additional statement. Is this really needed? 

[ThomasM125]

That is probably an error on your W-2. You could try entering the box 5 amount in your box 16 entry since that will be overstating your state income by a nominal amount. So, you won't be cheating anyone and that may save you a lot of trouble.

[mtr4]

Since using Turbotax 10+ years our medicare wages have always been higher than our state (PA) wages.  In our case our Medicare wages are equal to gross wages less medical/dental/vision insurance and our state wages are equal to gross wages less medical/dental/vision insurance AND less group life insurance. I'm not sure why Turbotax is asking this question and if it is new question for 2023 or if I have been inadvertently  answering it incorrectly.  I am get the same response as you, but have never submitted our W-2s to PA. So not sure if I should answer none of the above or complete the statement indicating why they are different. It is a bit confusing and I'm unsure of what to do.

[RobertB4444]

@ThomasM125 has good advice above.  If the difference is only a few dollars just enter the box 3 amount into box 16 and be done with it.  

@mtr4 

[pyk]

But what if the difference is not just a few dollars?

I am having the same issue and the difference between "Box 5 Medicare wages and tips" and "Box 16 State wages, tips" is 486 dollars. This is the exact amount of "Box 12b - Code C", which is group life insurance.

I have been using Turbotax for many years living in PA with the same job and this difference with Box 5 being greater than Box 16 due to the group life insurance has always been the case and I have never had to answer this question or send in a statement or send in my W2 before.

Has something changed? Any guidance would be appreciated.

[DianeW777]

No, there has not been a change in the taxable compensation for Pennsylvania (PA).  There is no need to send in your W-2 unless it is requested by PA Department of Revenue later.  As you are already aware, this is uncommon.  The wage tax summary W2–S will be their record.

• See Income Items Never Taxable As PA Compensation  (Ctrl + F to search the page for group term life)

@pyk 

[Hal_Al]

Maybe the W-2 is correct.  PA does not tax "Premiums paid by an employer for group term life insurance (no limit)".

Reference: https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Gross-Compensation.as...

[pyk]

Thank you. I guess it's still a bit strange to me that this is the first time I ever remember this question being asked and that once you click that this is your situation, it says that you must type out a document explaining the discrepancy and additionally send in a W2. I have never been asked to do any of this despite this being my circumstance for many years.

[gjfriborg]

We have the exact same situation. Last year was the first time I remember being asked this question on our PA state tax return. Our box 16 is also lower than our box 5 by a similar amount. It seems that based on the tax expert answers, it is a non-issue?

@pyk 

[ThomasM125]

It will likely not affect the processing of your return if you do not send the copy of your W-2 form. If it is requested later you can send a copy at that time.

@gjfriborg