W2 box 1 vs box 3

Feb 23, 2009 1 Replies

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?


I've seen this when the employer pays the employee's FICA/Medicare rather than withholding it. It adds to box 1 wages but not to 3 & 5.

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