W-2 (For Virginia preparers)

[Christian]

A client has brought me a W-2 showing $46,959 in Box 1 and $52,650 in the Social Security and Medicare tax boxes. I plan to ask her but I think this is for health insurance carried through her employer likely through a Cafe 125 arrangement. However, her Virginia wages are shown as $52,650. The ATX program shows her federal and Virginia wages as $46,959 but I am concerned that I should report her Virginia wages as $52,650. What do you think?

[Gail in Virginia]

Virginia starts with federal AGI, and makes any adjustments for items that they don't conform to.  I am not aware of any wage adjustments that VA is currently not conforming with, so I don't think that I would be overly concerned with the W2 not matching federal and state amounts.  ON the other hand, I would want to know what the amount is that caused the discrepancy.  Usually health insurance reduces taxable income as well as ss/medicare.  I see this pattern more ofter with simple plans, or 401(fkk), etc.  Usually that is indicated on the W2 in box 12 but not always.  Out local school system does not put the retirement contributions employees make in box 12, but they do deduct them from taxable wages. 

[Christian]

Thanks Gail. I'm going with the lower amount. If the Department of Taxation has a problem with the reporting I am certain they will holler :). 

[Possi]

Is it a military W2? If so, it is common for box 1 to be less than 3 and 5. 

Box 1, I agree, is the figure to carry to VA 760.

[Christian]

Thanks to two Belles for your responces.