W2 what is social security wages

This amount should be equal to 1. Dependent care benefits: The total amount of any dependent care you had deducted for the year. Nonqualified plans: Amounts distributed to you from nonqualified deferred compensation plans or non-government Section pension plan.

The amount in Box 11 is already included as taxable wages in Box 1. See inst. Code C: Executive life insurance Code E: b contribution Code G: b contribution Code P: Excludable moving expenses Code W: Employer Contributions including amounts the employee lected to contribute using a section cafeteria plan to your health savings account.

Code Y: Deferrals under a section A nonqualified deferred compensation plan. Code Z: Income under a nonqualified deferred compensation plan that fails to satisfy section A. The amount in the IRC box is treated on a pre-tax basis for federal income purposes. It reduces your taxable wages Box 1 and social security and Medicare wages Boxes 3 and 5. The reduction in year-to-date earnings shows in your W-2, not in your pay statement.

This amount is subject to state and City taxes and must be added back to the taxable wages in Box 1 when you file your taxes. This amount reflects your pre-tax Commuter Benefits contributions. Your taxable wages Box 1 , social security and Medicare wages Boxes 3 and 5 , and your state and City wages Boxes 16 and 18 are reduced by your Commuter Benefits deductions during the year.

IMP - Imputed Income, which is the taxable value of the employer contribution for health benefits provided to a retiree's domestic partner. This amount is included in Box 1 and must be reported for federal, state and local taxes. This amount is shown in Box 14 labeled as "IMP". The City paid your social security Box 4 and Medicare Box 6 taxes. Therefore, your taxable wage amounts Boxes 1, 3 and 5 have been increased accordingly. The following are subject to state tax and must be added to state wages on your individual tax return:.

Tax Year This is the calendar year covered by the W If your name is incorrect, you should notify your agency. A corrected W-2 will be issued. The above listed taxable fringe benefits are shown in Box Social security wages are not affected by deferred compensation or pension contributions.

Medicare wages are not affected by deferred compensation or pension contributions. Box 9 is relatively new. You may see a digit verification code here. It's part of a growing security initiative to assist the IRS with verifying that the form is authentic. If your form W-2 contains this code, you or your tax professional should enter it when prompted using software electronically filed returns only.

If the code is not on your form, don't worry: your tax return will still be accepted. Box 11 is used to report amounts distributed to you from your employer's non-qualified deferred compensation plan this amount is taxable. Don't confuse this with amounts contributed by you. That shows up in box Box 12 is the kitchen sink of form W-2 reporting.

Here, you'll see all kinds of codes. Not all of the income coded at box 12 is taxable. Here's a quick rundown of the codes if you have trouble reading them, click here :. In my example form W-2, I've included three of the most popular codes.

If you participate in an elective deferral program like a k plan, you'll see it reported using Code D. As explained earlier, these amounts will generally be included in box 3 and box 5, too, even if they are excluded from wages at box 1.

The cost of employer-sponsored health coverage or health insurance paid for by your employer is reported using Code DD. This amount is reportable under the Affordable Care Act, sometimes referred to as Obamacare, but it is not taxable to you. In most cases, this is only your major medical benefit: separate dental or vision plan reporting is optional. Also optional? Excludable moving expenses are reported using Code P.

This is an example of benefits which are reported by your employer but are not taxable to you. If reimbursements are non-qualified, they will be reported as income to you in boxes 1, 3, and 5. Box 13 really isn't one box: it's a series of three boxes. Your employer will check the applicable box if you are a statutory employee employees whose earnings are subject to Social Security and Medicare taxes but not federal income tax withholding ; if you participated in your employer's retirement plan during the year; or if you received sick pay under your employer's third-party insurance policy.

Box 14 is a "catch all" box. Your employer reports anything here that doesn't fit anywhere else. Examples include state disability insurance taxes withheld, union dues, health insurance premiums deducted and nontaxable income.

If you can't figure out the amounts in this box, check with your payroll or human resources HR department: in most cases, the IRS will not be able to interpret these for you. Box 15 is straightforward and includes your employer's state and state tax identification number. If you work in a state without a reporting requirement, this box along with boxes 16 and 17 will be blank. If you had multiple withholdings in a number of states, more than one box will be filled.

If you are subject to state taxes, box 16 will indicate the total amount of taxable wages for state tax purposes. If you have wages reported in box 16, box 17 will show the total amount of state income taxes withheld during the year.

If you live in a state that has a flat state tax like PA , you can double check to make sure that your withholding is correct by multiplying the amount in box 16 by the flat tax rate. If you are subject to local, city, or other state income taxes, those will be reported in box If you have wages subject to withholding in more than two states or localities, your employer will furnish an additional form W If you have wages in box 18 subject to local, city, or other state income taxes, any amount of withholding will be reported at box Box 20 is exactly what you'd expect: the name of the local, city, or other state tax being reported at box You should have received your form W-2 - with all of this information properly reported - by January 31, If you don't have your form W-2 yet, check out this article for your next steps.

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