Please answer questions 6, 7, and B together as they relate to the attached W-2
ID: 2329167 • Letter: P
Question
Please answer questions 6, 7, and B together as they relate to the attached W-2 Form and to each other 123-45-6189OWS No 140000 500 , 770 security tax wihhekd 3, 110 I-aa 33445 name, address, and DP code secury wages The Mom and Pop Shop 457 Cherry Tree Lane Mathis, TN 32906 Medioare 5 o, oo0 725 tips Veifcalion cods AIBa D I.600 1DDI 5,000 at rame and nti Last name Martin C. creswell 413 Rectangle Way Anywhere, TN a290o 7 State income ta .535 18 Eaie TN 12345 48,60 750 VS 48,500 Martin is a single filer who received $55,000 from The Mom and Pop Shop in 2018. He paid $5,000 for health insurance coverage through his employer, The Mom and Pop Shop, and his employer paid $5,000 as well (totaling to $10,000 worth of coverage). Martin also made 401(k) elective deferrals throughout 2018. How is this information reflected in Martin's W-2 Form? 6. What do each of the codes in box 12 (D and DD) indicate? List 5 other codes you would potentially see in box 12 (including their meanings). 7. 8. How does box 12a, in this case, relate to boxes 1 and 31?Explanation / Answer
6. According to IRS 401(k) elective deferral is "a contribution plan for employees under which an employee can contribute from salary." Any contribution to 401(k) elective deferral should be reported in box 12D of W-2 form.
7.
12D - Contribution to 401(k) elective deferrals
12DD - Contribution by the employer to the health coverage plan.
12A - Reporting social security uncollected.
12B - Reporting Medicare tax on tips uncollected.
12C - For group-term life insurance taxable cost over $50,000.
12J - Sick pay nontaxable.
12T - Adoption benefits.
8. Box 12A represent social security uncollected. Box 1 represents taxable wages and box 3 shows total wages taxable for social security. Social security value will be calculated on the basis of values reported in box 3.