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    fjtaidajf2's Avatar
    fjtaidajf2 Posts: 1, Reputation: 1
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    #1

    Feb 5, 2009, 12:46 PM
    Income tax
    Box #5 medicare wages is higher than
    Box#1 wages,tips,other compensation
    On my w-2 form.
    Is #5 always higher or sometimes equal to #1?
    Why higher? What is the difference?
    Why equal?

    Which amount do I report on line 7
    Wages,salaries,tips of 1040 form?

    Thank you!
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Feb 5, 2009, 12:56 PM

    You report Box 1 as your wages.

    There are many reasons Box 5 may be greater than Box 1. A couple of comon ones: if you had deductions for a 401(k) or 403(b) plan those deductions reduce your federal income but not your SS/medicare income; if your employer provided life insurance above$50K, or other non-wage "perks" they may be included in SS/medicare wages but not federal wages.
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