Box 12A on W2 form

[RareBreed]

I was doing my oldest son's taxes on TurboTax this morning and because the employer put an amount in box 12A on his W2 form, it is saying my son will owe over $17,000! This happened last year too but it was under $1000. Google says it's uncollected social security tax or taxes on tip. He is an electrician's apprentice so he doesn't receive tips. Why would the employer not collect social security tax during the year and end up screwing his employees at tax time?

 

[Kyle]

Sounds like his employer screwed up the W-2.

if his employer isn’t pulling out Social Security and Medicare taxes, that’s on the employer. It’s a requirement. Especially since the employer is supposed to kick in a matching amount.

 

[phreddyp]

I was doing my oldest son's taxes on TurboTax this morning and because the employer put an amount in box 12A on his W2 form, it is saying my son will owe over $17,000! This happened last year too but it was under $1000. Google says it's uncollected social security tax or taxes on tip. He is an electrician's apprentice so he doesn't receive tips. Why would the employer not collect social security tax during the year and end up screwing his employees at tax time?

You are certain that it's a w2 and not a 1099?

 

[RareBreed]

You are certain that it's a w2 and not a 1099?

Says W2 on the form.

 

[RareBreed]

Son texted the person who does the paychecks and she said off the top of her head that was employee contributions so like per diem. That's crazy. He might have to let our CPA handle this one. I'm not willing to screw him over using TurboTax like normal.

 

[Kyle]

Son texted the person who does the paychecks and she said off the top of her head that was employee contributions so like per diem. That's crazy. He might have to let our CPA handle this one. I'm not willing to screw him over using TurboTax like normal.

Per diem’s should not be taxable.

 

[RareBreed]

Per diem’s should not be taxable.

I'm going to let a professional handle it.

 

[vraiblonde]

If his employer was supposed to be taking out SS contributions and didn't, that $17k is owed by the employer and not your son. Consult a CPA and keep us posted because I'm interested in how this happened and what the resolution is.

 

[phreddyp]

If his employer was supposed to be taking out SS contributions and didn't, that $17k is owed by the employer and not your son. Consult a CPA and keep us posted because I'm interested in how this happened and what the resolution is.

He should look at his pay stub, if it shows it being taken out this should get interesting quickly.

 

[Czar]

Per diem’s should not be taxable.

Income is income. Tax is due.

If his employer was supposed to be taking out SS contributions and didn't, that $17k is owed by the employer and not your son. Consult a CPA and keep us posted because I'm interested in how this happened and what the resolution is.

Actually, it is owed by both employee and employer. We pay 6.2%, employer 6.2%, plus 1.45% for lovely medicare tax each.

Shame on the employer, but If one owes $17k in taxes, considerable income was earned. Don't people check their pay stubs anymore?

 

[Merlin99]

I was doing my oldest son's taxes on TurboTax this morning and because the employer put an amount in box 12A on his W2 form, it is saying my son will owe over $17,000! This happened last year too but it was under $1000. Google says it's uncollected social security tax or taxes on tip. He is an electrician's apprentice so he doesn't receive tips. Why would the employer not collect social security tax during the year and end up screwing his employees at tax time?

Is there a letter after the monetary amount? 12a is just a catchall box as is 12b,12c and 12d, most of them are non taxable

A - Uncollected social security or RRTA tax on tips.
B - Uncollected Medicare tax on tips.
C - Taxable cost of group-term life insurance over $50,000
D - Elective deferrals under a section 401(k)
E - Elective deferrals under a section 403(b)
F - Elective deferrals under a section 408(k)(6) SEP retirement plan
G - Elective deferrals and employer contributions
H - Elective deferrals to a section 501(c)(18)(D) tax-exempt organization retirement plan
J - Nontaxable sick pay
K - 20% excise tax on excess golden parachute payments
L - Employee business expense reimbursements (nontaxable and not included in Box 1). You can't deduct any of the expenses related to this reimbursement.
M - Uncollected social security or RRTA tax on taxable cost of group term life insurance over $50,000 (former employees only)
N - Uncollected Medicare tax on taxable cost of group term life insurance over $50,000 (former employees only)
P - Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces (not included in boxes 1, 3, or 5)
Q - Nontaxable combat pay
R - Employer contributions to your Archer MSA
S - Employee salary reduction contributions under a section 408(p)
T - Adoption benefits (not included in box 1)
V - Income from exercise of non-statutory stock option
W - Contributions made through your employer to your Health Savings Account
Y - Deferrals under a section 409A non-qualified deferred compensation retirement plan.
Z - Income under section 409A on a non-qualified deferred compensation retirement plan
AA - Designated Roth contributions to a section 401(k) retirement plan
BB - Designated Roth contributions under a section 403(b) salary reduction agreement retirement plan
DD - Cost of employer-sponsored health coverage (nontaxable)
EE - Designated Roth contributions under a governmental section 457(b) plan
FF - Permitted benefits under a qualified small employer health reimbursement arrangement
GG - Income from qualified equity grants under section 83(i)
HH - Aggregate deferrals under section 83(i) elections as of the close of the calendar year
II - Medicaid waiver payments

 

[black dog]

Income is income. Tax is due.

Actually, it is owed by both employee and employer. We pay 6.2%, employer 6.2%, plus 1.45% for lovely medicare tax each.

Shame on the employer, but If one owes $17k in taxes, considerable income was earned. Don't people check their pay stubs anymore?

With my 25 years of getting mileage and zone per diem not once did I pay income tax on that money.

Per diem’s should not be taxable.

 

[OccamsRazor]

Your boy must me making BANK if he owes $17K just in SS tax! Just sayin'

Hope you get it all straightened out though...

 

[RareBreed]

Is there a letter after the monetary amount? 12a is just a catchall box as is 12b,12c and 12d, most of them are non taxable

A - Uncollected social security or RRTA tax on tips.
B - Uncollected Medicare tax on tips.
C - Taxable cost of group-term life insurance over $50,000
D - Elective deferrals under a section 401(k)
E - Elective deferrals under a section 403(b)
F - Elective deferrals under a section 408(k)(6) SEP retirement plan
G - Elective deferrals and employer contributions
H - Elective deferrals to a section 501(c)(18)(D) tax-exempt organization retirement plan
J - Nontaxable sick pay
K - 20% excise tax on excess golden parachute payments
L - Employee business expense reimbursements (nontaxable and not included in Box 1). You can't deduct any of the expenses related to this reimbursement.
M - Uncollected social security or RRTA tax on taxable cost of group term life insurance over $50,000 (former employees only)
N - Uncollected Medicare tax on taxable cost of group term life insurance over $50,000 (former employees only)
P - Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces (not included in boxes 1, 3, or 5)
Q - Nontaxable combat pay
R - Employer contributions to your Archer MSA
S - Employee salary reduction contributions under a section 408(p)
T - Adoption benefits (not included in box 1)
V - Income from exercise of non-statutory stock option
W - Contributions made through your employer to your Health Savings Account
Y - Deferrals under a section 409A non-qualified deferred compensation retirement plan.
Z - Income under section 409A on a non-qualified deferred compensation retirement plan
AA - Designated Roth contributions to a section 401(k) retirement plan
BB - Designated Roth contributions under a section 403(b) salary reduction agreement retirement plan
DD - Cost of employer-sponsored health coverage (nontaxable)
EE - Designated Roth contributions under a governmental section 457(b) plan
FF - Permitted benefits under a qualified small employer health reimbursement arrangement
GG - Income from qualified equity grants under section 83(i)
HH - Aggregate deferrals under section 83(i) elections as of the close of the calendar year
II - Medicaid waiver payments View attachment 185035

Thank you! I looked again and there is a "L" next to it. Didn't see that! Any idea how to amend last year's so he can get his $700 that he thought he needed to pay back???

 

[Merlin99]

Thank you! I looked again and there is a "L" next to it. Didn't see that! Any idea how to amend last year's so he can get his $700 that he thought he needed to pay back???

If you used Turbo Tax I'd call them, personally I don't know.

 

[RareBreed]

If you used Turbo Tax I'd call them, personally I don't know.

Can do it online. Will have to bring his stuff into work tomorrow and try to amend last year's. Pretty sure I made the same mistake then as I did this year. Never noticed the "L".

 

[Czar]

With my 25 years of getting mileage and zone per diem not once did I pay income tax on that money.

What's zone per diem?

The way I see it, if you don't owe tax you were working for free.

 

[Merlin99]

What's zone per diem?

The way I see it, if you don't owe tax you were working for free.

Per diem is an allowance paid for travel and the amount is dependent on the area that you're traveling to. Per diem also is a company business expense (a business deduction) for the company you are traveling for.