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nurse-33
New Member

W2 box 7 is being added to income when it's already included in box1

 
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DianeW
Expert Alumni

W2 box 7 is being added to income when it's already included in box1

No, it will not be added twice. The income in box one is the combined amounts in Boxes 7 and 3.  They should add up to the amount that appears in Box 1 if you don't have any pre-tax benefits, or may equal the amount in Box 5 if you do receive pre-tax benefits. The total of Boxes 7 and Box 3 should not exceed the $118,500 Social Security wage base. The amount from Box 7 is already included in the Box 1 amount.

If by chance you have income in Box 8, Allocated Tips, then these should be added to your income.  The employer is required by law to allocate tips to employees if their combined total of tips reported is below a certain percentage of sales.  For more information on allocated tips you can use this link: Tip income Information-Publication 531

Record your W2 exactly as it appears for the correct calculations of income.

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