box 1 on Federal Income copy is less than State and Local Tax copy

[yosemite798]

On my wife's W-2 form, the number shown in box 1 (wage, tips and other comp) on Federal tax filing copy is $5000 less compare to box 1 on state and local tax filing copy. 

• box 1 on Fedearl tax copy shown: $43749.44
• box 1 on state and local tax copy show: $48749.44
• the income shown under reported on W-2: $48749.44 on 2021 W-2 and Earning Summary section
• Her 401K contribution is $1,384.60

She contacted her HR department, they told her to use the number on state and local tax copy. We live in Texas (no state tax). 

She received a bounus in amount  $10,000 from her employer (bounus issued in 2/2022). 

We plan to file as married couple for 2021. 

I am wondering if this discrepancy will cause issues or confusion when IRS review our income tax for 2021. 

[JohnB5677 · Accepted solution]

It is not uncommon for State wages to be greater than Federal wages if it's a non-tax state.  The state wages will be the full gross wages because there are no adjustments.  The Federal wages may have adjustments. 

I think you're on the right track with the 401-K contribution.  Are there any other contributions on your wife's W-2 that would account for a greater change?

If the bonus was issued in February 2022, it should not have an effect on this year's taxes.  did she get a bonus in 2021?

I don't expect the IRS will challenge what is on the W-2.  If you still have concerns I suggest you follow through with your payroll department.

[yosemite798]

Hello JohnB56777, 

 Thanks for your reply. 

a. I didn't see other contributions from her W-2 form.

b. My wife didn't receive bonous in 2021.

I feel at ease and I will sarting prepreing our income tax soon. 

[VolvoGirl]

Maybe on the federal copy B the "3" is really an 8 that didn't print right or got smudged?   Maybe other employees have the same printing issue in that spot.