Quote:
Originally Posted by haggardhouseelf
Can someone explain to me the difference between line 1 "Wages, tips, other compensation" and lines 3 and 5 - 3 being "social security wages" and 5 being "medicare wages and tips"?
Also - for states where you have to pay state tax, this is prolly a really dumb question, but why do I not see the state tax owed on the w-2? Or am I just missing it?
This year I have decided to really try to understanding how the tax thing works! We've kind of been dummies and just gone to H&R Block every year to do our taxes. We withhold at a higher taxable rate so we always get a big return and it feels like a relief to never have to write a check and pay anything at that time - we just withhold more all year long.
Anyway - thanks!
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Line 1 (AKA Federal Taxable wages) will be your total earnings less any pre-tax deductions (401K, Flex spending contributions etc).
Lines 3 and 5 will be either your total earnings OR the 2011 limit for SS/Medicare taxable earnings $106,800 if you earn move than that amount.
Your W-2 doesn't show Federal or State tax owed. Just what you made and what you've paid so far.