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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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What can be deducted from wages on a w-2 ie health insurance

Resolved Question:

What can be deducted from wages on a w-2 ie health insurance simple iras etc and can anything be duducted for medicare wages.
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.

Are you asking what you should deduct on the actual W-2 form itself, or are you inquiring what you can deduct from a W-2 that you already received?



Customer: replied 7 years ago.
On the w-2 form itself from the various boxes 1,3,5 Specifically Health Insurance, Dental insurance,simple ira and alflac insurance
Expert:  Merlo replied 7 years ago.

Hello hud,


One more question please since you have asked about a simple IRA. Are you the sole owner of this business and you paid yourself a salary? If so, what type of business structure do you have? It is an LLC, S Corp, C Corp?



Customer: replied 7 years ago.
s corp non owner and also what about the owner of s corp
Expert:  Merlo replied 7 years ago.

Sorry for more questions, but your information leads to more info needed.


Did you actually deduct the SEP IRA contributions from the checks and deposit those amount in to an SEP IRA account?


If so, was this plan set up prior to 1997 because that is no longer allowed for plans set up after 1997.



Customer: replied 7 years ago.
yes they went into a plan and it was set up before 1997
Expert:  Merlo replied 7 years ago.

Hello again hud,


Thank you for the additional information.


Thank you for the additional information.


The health insurance, dental insurance and aflac insurance premiums do not get included in boxes 1, 3 or 5 at all. Amounts deducted from the employee's wages for these premiums do not even need to be reported anywhere on the W-2 form.


The simple IRA deductions are not included in box 1 that shows the gross taxable wages, but they are included in boxes 3 and 5, as these premiums are still subject to SS and Medicare tax. You will also report the amounts contributed to the SEP in box 12 of the W-2 form with a code of "S".


If this was helpful please press the Accept button.


Thank you hud. Sorry for all the questions, but needed to make sure before I gave you the answer of what your situation was here.



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