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Returning Member
posted Feb 22, 2022 1:28:00 AM

social security taxes

I have two daughters both work at restaurants.  W-2's for both have wages in box 3 significantly lower than wages in boxes 1 and 5.  Social security tax calculated on wages in box 1 not box 3.  Turbotax indicated employer over withheld in one case but not the other.  Question: Why are wages on box 3 less than boxes 1 and 5.  They do not have 401k's.

 

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1 Replies
Expert Alumni
Feb 22, 2022 5:04:05 AM

Social security tips are reported separately in Box 7 from their regular wages in Box 3 of their W-2. If you add the Box 3 and the Box 7 amounts, it should be equal to the amount in Box 5. The social security tax is calculated on the total amount of social security wages plus tips.