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Jnelso
New Member

Why are wages in box 1 so much lower than the SS wages in box 3 on my w-2

it appears that the wages i box 3 are not calculated in my total income on
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2 Replies

Why are wages in box 1 so much lower than the SS wages in box 3 on my w-2

You probably have a retirement contribution in box 12 which lowers your box 1 income. But those amounts are still subject to social security and Medicare taxes. 

DavidD66
Expert Alumni

Why are wages in box 1 so much lower than the SS wages in box 3 on my w-2

The most common reason that Social Security wages reported in Box 3 of Form W-2 are greater than Wages, Tips, Other Income reported in Box 1 is due to pre-tax retirement plan contributions such as a 401(k) or 403(b).  Also, if your employer's benefits include a Section 125 "Cafeteria Plan"  the medical insurance premiums you pay are not included in Box 1, but are included in Box 3 and Box 5.   

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