Box 5(medicare wages) doesn't sum up to box 1 + 401k contribution (box12 D)

[AP-111-1]

Hi,

I am looking at my W2, and my medicare wages(box 5) is less than the sum of my wages & 401k contributions. Note: I didn't use any medicare. 

Box 1: $x

Box 5: $y

Box 12(D): $z

In my case, $y is less than ($x + $z) . I suppose medicare tax withheld is also lower than what it should be. 

In other words, I am trying to figure out the exact differences between taxable medicare wages in box 5 vs taxable wages from box 1.  

One delta is 401k contributions, as "taxable medicare wages" is supposed to include this amount. 

What should I do? 

Thanks!

[parkwall]

Your question is confusing.  Are you saying you received Medicare and a W2?  or are you saying your W2 shows the Medicare withholding?  

[AP-111-1]

Thanks. I didn't receive medicare. Medicare wages and tips (box 5) in my W2 is not making sense to me. Ideally, it should be a sum of my wages(box 1) and my 401k contributions. 

Does this help?

[parkwall]

Your Medicare withholding should be 2% of your total pay.  I'm not sure if your 401k plus your Medicare will add to the total of your pay, I think that depends on how your 401k withdrawals are handled.  I've worked as a tax professional for over 6 years and I've never had anyone ask that.  Maybe someone else will have a better response for you.

[VolvoGirl]

You have to ask your employer. There are other pretax items that can affect it.   I never could figure out my husbands paychecks.  Medical insurance premiums are not only exempt from income tax but from Social Security and Medicare taxes as well. Consequently these premiums will not be included in either boxes 1, 3, or 5.

[AP-111-1]

In other words, I am trying to figure out the exact differences between taxable medicare wages in box 5 vs taxable wages from box 1.  

One delta is 401k contributions, as "taxable medicare wages" is supposed to include this amount. 

[AP-111-1 · Accepted solution]

I found the answer:

ESPP qualified/disqualified disposition are exempt from medicare tax. See page 4 of first paragraph here - https://communications.fidelity.com/sps_library/docs/bro-tax-espp-click.pdf 

Below calculation holds true for my case:

Box 5 = Box 1 -  $ESPP disposition + Box12(D) 

Also see https://turbotax.intuit.com/tax-tips/investments-and-taxes/empl[product key removed]ase-plans/L8NgMF...