Re: Should Box 1 and Box 5 on W-2's match?

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Should Box 1 and Box 5 on W-2's match?
Date: Mon, 22 Feb 1999 18:58:44 -0500

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>I just started doing my taxes (using TaxCut) and when I began to enter
>my W-2 info, it alerted me to the fact that my Box 1 entry (gross wages)
>did not match my Box 5 entry (medicare wages). I participate in a
>401K at work and usually this explained the difference. But TaxCut
>displayed a message stating that the laws were changed and that Medicare
>now taxes your gross wages?
>
>Can anyone tell me if my W-2's are incorrect? Or is TaxCut wrong?

Your W-2 forms are correct.  TaxCut is also correct, though its
explanation sounds weird.  Medicare tax has always been on your
gross (i.e. pre-401(k) contribution) wages.  That's not new at
all.  I'm also surprised it didn't gripe about Box 1 not matching
SS wages (the difference is because of the same reason).

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.2

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