Discussion:W-2 earnings for social security earnings limit
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| Revision as of 07:42, 21 February 2008 Natalie (Talk | contribs) (Hmmm, so if an e) ← Previous diff |
Revision as of 13:09, 21 February 2008 Murrsg07 (Talk | contribs) (Natalie, are you) Next diff → |
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| {{ForumReplyPost|UserID=Natalie|Date=February 21, 2008|Text=Hmmm, so if an employer does not disclose Sec. 125 withholdings on the W2, the employee would be able to get more benefits than otherwise would be allowed. Another reason to use Box 14 on the W2.}} | {{ForumReplyPost|UserID=Natalie|Date=February 21, 2008|Text=Hmmm, so if an employer does not disclose Sec. 125 withholdings on the W2, the employee would be able to get more benefits than otherwise would be allowed. Another reason to use Box 14 on the W2.}} | ||
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| + | {{ForumReplyPost|UserID=Murrsg07|Date=2008-02-21|Text=Natalie, are you sure???}} | ||
Revision as of 13:09, 21 February 2008
Discussion Forum Index --> Basic Tax Questions --> W-2 earnings for social security earnings limit
Discussion Forum Index --> Tax Questions --> W-2 earnings for social security earnings limit
| 20 February 2008 | |
| Basic question here that isn't easily found on SSA website. When determining the earnings limitation for those receiving ss benefits does SSA use gross wages (before 401(k) contribution) or taxable wage? | |
| 20 February 2008 | |
| See the instructions for Form W-2. Briefly, box 3 (social security wages) includes elective deferrals reported under code D in box 12 (401-k plan contributions), whereas taxable wages in box 1 would exclude them. | |
| 20 February 2008 | |
| I think you are misunderstanding my question....let me rephrase....I have a client who is receiving social security benefits and is also working. He wants to know, in determining the maximum amount he can earn and not lose his benefits, if he is to take into account his gross wages (before 401(k) contributions) or his taxable wages (which would be after his 401(k) contributions. | |
Death&Taxes (talk|edits) said: | 20 February 2008 |
| Trillium is perfectly clear: earnings for Social Security purposes, before the 401K.
"Wages for Social Security purposes are gross wages - wages before any payroll deductions for income tax, Social Security tax, dues, insurance, or other deductions by the employer. We use gross wages as the basis for Social Security credit and for determining whether benefits must be withheld because of earnings." Social Security FAQ | |
| February 21, 2008 | |
| Hmmm, so if an employer does not disclose Sec. 125 withholdings on the W2, the employee would be able to get more benefits than otherwise would be allowed. Another reason to use Box 14 on the W2. | |
