There are several reasons box 1 and box 16 do not match (e.g. pre-tax transportation benefits or wages from two states.) It is best to contact your employer to determine the reason the amounts differ.
After doing so, a simple reason can be entered in Part 111 of the PA-40X. You can enter the explanation your employer may provide you.
There are several reasons box 1 and box 16 do not match (e.g. pre-tax transportation benefits or wages from two states.) It is best to contact your employer to determine the reason the amounts differ.
After doing so, a simple reason can be entered in Part 111 of the PA-40X. You can enter the explanation your employer may provide you.
If you participate in a 401k retirement plan and are reporting PA income, box 1 and box 16 will never match. Federal allows your 401k contributions (box 12, code "D")to be deducted from your gross wages. PA does not.
That box 1 amt would be lower only if it is a Traditional 401K, right, not for a Roth 401K, right?
Correct. You receive a deduction on your income tax return because this contribution is not included in your wages in box 1 of your Form W-2. You pay income tax on the amount shown in box 1 on your Form W-2. Since the contribution to the 401(k) is not included in the box 1 amount, you do not pay tax on it. @gmott18