For the Human resource knowledgeable

[sho'nuff]

My wife last few years at the beginning of the year has always received her W2s from her work with the line 1. (Wages, tips, and other compensation) that shows her whole salary earned that year before taxes AND Before health insurance.

We never really thought anything of this as I was a contract worker (and did not receive health benefits) the past several years prior to this new job.


But isn't the line 1. supposed to only show the salary she made AFTER health insurance was deducted?
(On her paycheck (and mine) shows health benefits being deducted first, and then the rest is taxable).

If so, then the past few years she has been being cheated of a bit of tax relief because she should only be filing taxes on a smaller amount.

She is going to try to find out but her HR is hard to get a hold of. In the meantime, maybe somebody can shed some light. thanks.

 

[jc138]

That does seem strange, box 1 generally only includes taxable income and health insurance premium paid by your employer is usually not taxed.

Are you sure the entire premium is included in gross income and not just the amount of her contribution? For example, my box 1 appears to be grossed up by the portion of premium that I pay out of pocket, which is then broken out in box 14.