I have a question for tax gu-rus...

[kwormann]

Scotts W2 hasnt come yet (a problem we had last year). I am trying to use his final paycheck to plug some rough #s into TaxCut software.

Is this correct?

Pretend his base salary is 30000. Pretend 2000 was taken out for 401K. The # in box 1 (wages tips etc) will be 28,000 and the # in box 5 (medicare wages etc) will be the actual base, 30,000. Plus the taxes YTD are FED, FED FICA and FED MED....these will all be added together to be tax withheld. Is this correct? (enough to give me rough # untl we can order a new W2???)

Thanks

[lhall]

Kim,
I wouldn't call myself a GURU, but I don't think that's right. Your taxable wages and your SS or Medicare wages aren't the same, and I don't think the SS or Medicare counts as taxes paid. Only your FICA.

Leigh

[Cinnamon Crazy]

Oh I would definitely wait for the W-2. Box 2 of tax withheld is just your federal withholding. Fed FICA W/H goes in Box 4 and Fed Med W/H goes in Box 6. Leigh is right that in many cases your Fed wages (Box 1), SS wages (Box 3) and your Med wages (Box 5) are not the same. There are rules involved regarding which wages are subject to which type of tax (does that make sense).

-Anna

[jem927]

Kim,

You are correct to a degree.. The wages (after the 401K pretax deduction) would be your federal taxable wages (i.e. Box 1 Wages). The Box 2 Federal Withholding would be just the withholding for federal, not that plus his social security and medicare. If you add the three together, you would be overstating how much he had withheld for federal tax purposes.

The only benefit to having the social security amounts withheld on the W-2 is that if you or any individual works multiple jobs, it is possible to exceed the annual limit on Social Security. IF that is the case, you can get a refund for the excess. BUT it does not directly "count" towards the federal withholding.

You can use those numbers as estimates, but I would definitely wait to finalize your return until you have a good W-2 to work from. I have seen many occassions in my time in public accounting where there are last minute adjustments to W-2's at year end.

Hope this helps! Let me know if you have any other questions.

Jamie

[swquilts]

Kim, Cinnamon (Anna) does taxes...

It's my understanding that employers have until 1/31 of each year to provide their employees with the W-2s, a federal employer law of some sort. I would have him start hounding them about it.

Any tax preparers.....am I right?

[kwormann]

Originally posted by swquilts
Kim, Cinnamon (Anna) does taxes...

It's my understanding that employers have until 1/31 of each year to provide their employees with the W-2s, a federal employer law of some sort. I would have him start hounding them about it.

Any tax preparers.....am I right?

Thanks for the help. Yes, you are right, but as Scott said, who is he going to tattle to? He called today and ordered another one.

SInce we are going to owe AGAIN (cant figure that one out!), I wanted to get a rough idea of how much so I can be saving.....

Hopefully the new one will come soon!

[lhall]

Susan,
Yes, employers are required to have your W2 in the mail by 1/31.

Kim,
If you want to do rough figures you have to remember that benefits come out pre-tax. Your taxable income (box 1) will be lower than SS or Medicare wages. Although, it would be better to estimate your income as too high so you find out you owe less than you thought.

Leigh

[mcraig13]

Kim,
Ditto what Jamie said--I do these things for a living.

[kwormann]

Originally posted by mcraig13
Kim,
Ditto what Jamie said--I do these things for a living.

Im so sorry...

still waiting for the new one.....