what are medicare wages and tips?

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Medicare wages and tips represent the total amount of income you earned that is subject to the Medicare tax, which is found in Box 5 of your W-2. This amount includes your base salary, tips, bonuses, and commissions, but it does not have deductions for 401(k) or other retirement contributions, so it is often higher than the "taxable wages" used for your income tax.

While the Social Security tax stops after you reach a certain income limit, the Medicare tax does not.