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Thank you for giving me the opportunity to assist you. I will give the best answer that I can with the information provided.
On the final check, the YTD wages may not include the bonus amount. The bonus may show up on a separate line---or only on the check stub for which it was received.
I am guessing that you are rounding off her bonuses to $3500---if her wages plus bonus = $43602. So her total Gross income is $43602. Now, if your wife has any pretax deductions, such as 401k or medical insurance deductions---this could reduce the amount shown in box 1 of the W2. From what you are stating, it appears that Box 1 of the W2 is $1021.01 less than her gross income. If she gets paid biweekly, and approx $39 is deducted each paycheck for medical insurance--this could be why.
Please let me know if there are any other deductions shown on her paychecks, what they are, and I could figure out exactly what the discrepancy is. Also, let me know if there are any entries in Box 12 of her W2 and what they are.
Thanks Wendy for your response, let me give you the numbers on the last paycheck and the W2 so you can try and make sense of it :)
Bi weekly pay- Last paycheck of the year 12/31
Earnings 2083.33 YTD: 40352.51
Bonus. 0.00 YTD:3250.00
Total: 2083.33 YTD: 43602.51
SS: 125.76 YTD: 2638.57
Mcare: 29.41 YTD: 617.08
401k: 0.00 YTD: 125.00
Flex health: 0.00 YTD 770.00
Fed WH: 195.90 YTD: 4631.23
on biweekly pay her first check she started in march was march 31st.
13. retirment plan box checked
14. Flex health 1045.00
15. TX (no state income tax)
17.state income tax
Hope this helps with the info....
I have some information for you.
The total earnings from paycheck are 43602.51. This is $23.48 less than what is reported as the state earnings in box 16. The only thing that I know of that could cause this is if there is "imputed income" from some benefit, such as group term life insurance, where an amount is added to the gross earnings for tax purposes. However, this would show up in Box 12, and it is not there, so she should ask the employer or human resource department for the discrepancy between paycheck gross income, and state wages reported in Box 16 of the W2. (discrepancy $23.48)
For the difference in Box 1---You need to subtract $125.00 for 401k contributions--- and $1045.00 for the Flex health. Both of these benefits are subtracted from federal earnings to come up with Federal taxable income. So Box 16 minus 1045 and 125 equals the amount in Box 1. The only discrepancy that she should ask her employer about is the $23.48 that is greater in Box 16 of the W2 than what is shown as gross earnings on the paycheck.
Let me know if you need additional information.