Kristen, a single taxpayer, receives two 2020 Forms W-2 from the two employers she worked for during the year. One Form W-2 lists her wages in Boxes 1, 3, and 5 as $18,700. Her other employer's Form W-2 has $43,000 in Box 1 but only $46,500 in both Box 3 and Box 5. Kristen participated in the second employer's 401(k) plan. She also received health care from
alaries and Wages (LO 2.2)
Kristen, a single taxpayer, receives two 2020 Forms W-2 from the two employers she worked for during the year. One Form W-2 lists her wages in Boxes 1, 3, and 5 as $18,700. Her other employer's Form W-2 has $43,000 in Box 1 but only $46,500 in both Box 3 and Box 5. Kristen participated in the second employer's 401(k) plan. She also received health care from her second employer. Lastly, her second employer provided $30,000 of group term life insurance to Kristen.
a. What amount should Kristen report as taxable wages in 2020?
$fill in the blank e77cb3fccfa703d_1
b. What could explain the difference between Box 1 wages and Boxes 3 and 5 on her second employer's W-2?
It would appear that Kristen made $fill in the blank b48564f5cfeb03e_1 of contributions toward her employer's 401(k) plan. The health care and group term life
create a difference between Box 1 and wages taxable for Social Security and Medicare in Boxes 3 and 5.
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