Taxpayer worked as a domestic employee for the summer. W-2 form arrived and Box 1 is $376.19 more than Box 3 (& Box 5). SS and Medicare taxes are correctly withheld based upon Box 3 & Box 5. There are no entries in boxes 7-14.
I am guessing that the extra $376.19 is guitar lessons given to a family member during child care. If that is true, shouldn't that be listed on a separate 1099? If so, how does taxpayer sort this out?
Any other possible reasons why Box 1 & Box 3 are not the same number?