jasdlm Posted April 9 Report Share Posted April 9 I have a W2 for $2,700, but Box 1 is empty, and the SS and Medicare boxes each have $2,700 along with the relevant w/holding. Client (kid of a client) tried to do her own return last year, and it rejected, so brought to me. I think the W2 is incorrect. I've never seen a W2 with $0 in box 1 but amounts in 3 - 6. At the risk of making myself look ill-informed, what am I missing? In searching online, it seems that box 1 should have been completed, but not box 3 and 5, and it seems that the almost $200 fica/medicare withheld shouldn't have been withheld. Yikes! Do I need to give up my preparer's license? Thanks much. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 9 Report Share Posted April 9 Did the employee contribute his full wages to a 401(k) or 457 plan, health/dental/vision insurance, flexible spending accounts, or retirement and tax deferred savings plans? Is that even allowed?! If so, his contribution would NOT appear in Box 1 but would be taxed in Boxes 3-6. 1 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 9 Author Report Share Posted April 9 Nothin in any box 12 or box 14. Hmmm. Quote Link to comment Share on other sites More sharing options...
Lee B Posted April 9 Report Share Posted April 9 If your client's daughter goes to the Americorp website, there should be an explanation for her W 2. Americorp has different programs with some strange tax rules that apply. 1 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 11 Author Report Share Posted April 11 Thanks so much! I scoured the website and found examples of Box one with no Box 3 but not Box 3 with no Box 1. Hmmm. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 11 Report Share Posted April 11 Any Form W2-C exist for this employer to this employee, that used along with the W-2 you have would solve the mystery? 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted April 11 Report Share Posted April 11 Either ignore the W 2 and don't file or paper file the return. 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 11 Report Share Posted April 11 Or put $1 in box 1 1 Quote Link to comment Share on other sites More sharing options...
mcbreck Posted April 11 Report Share Posted April 11 I don't think you can efile with $0 in Box 1. We've talked about this previously to just enter $1. Only time I ever had one like yours, it was due to stock options where they withheld SS and MEDA from the amount but they didn't have any earned income. Is there a stock transaction report? 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 11 Report Share Posted April 11 It's more likely that this is some sort of stipend that isn't taxable as federal wages but had the SS & Medicare withheld. As others said, either ignore the w-2 completely or enter $1 as federal taxable wages. Personally I'd ignore it if there isn't anything in any other boxes that needs reporting. Nothing on the that W-2 that affects any state return? 4 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 12 Author Report Share Posted April 12 Thank you all! I put $1 in box one and shipped it off. No state return affected. Same organization did her 2023 return and reported all income in all 3 boxes. I still think both year's W2s are incorrect, as I think the money was her living stipend, but unless/until she gets me her agreement, it stands as reported. Thanks again! 2 Quote Link to comment Share on other sites More sharing options...
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