Certain amounts that are taken out of your pay are not subject to federal income tax, so they are not included in box 1, but they are subject to Social Security and Medicare taxes, so they are included in boxes 3 and 5. A common example is contributions to a 401(k) plan.
Certain amounts that are taken out of your pay are not subject to federal income tax, so they are not included in box 1, but they are subject to Social Security and Medicare taxes, so they are included in boxes 3 and 5. A common example is contributions to a 401(k) plan.
I have the same problem from excess "pension benefits" with a defined pension plan at Raytheon. Turbo tax says to check my W-2. I have, and medicare wages are significantly higher (like 48x higher)
what do I do in turbo tax?!?!?
Thanks!
If it is correct, then do nothing and continue on. Frequently box 3 and 5 are higher than box 1. This is just an alert in case you made a typo.