Another Bonehead Question - W2 box 12 code S

[Monkeyman]

Hello Everyone,

I remeber when I worked at a gas station, had one W2,

and did my taxes with a booklet from the library in 20 minutes

My wife's W2 has a number in box 12a, with a Code of S (employee salary reduction contributions under a section 408(p) SIMPLE - not included in box 1).

Her wages and SS wages differ by the amount in box 12a.

Do I include the amount in box 1 when entering the information on the W2 worksheet,

or the amount in box 1 added to 12a? Do I have to do anything special with the number in 12a?

Thanks!

Ker....I mean Monkeyman

[Jerry W]

Hello Everyone,

I remeber when I worked at a gas station, had one W2,

and did my taxes with a booklet from the library in 20 minutes

My wife's W2 has a number in box 12a, with a Code of S (employee salary reduction contributions under a section 408(p) SIMPLE - not included in box 1).

Her wages and SS wages differ by the amount in box 12a.

Do I include the amount in box 1 when entering the information on the W2 worksheet,

or the amount in box 1 added to 12a? Do I have to do anything special with the number in 12a?

Thanks!

Ker....I mean Monkeyman

The amount in box 1 is what is entered on the worksheet. The amount in box 12a is the amount sheltered from income tax.

Hope this answers your ?

Jerry W

[HV Ken]

The W-2 worksheet has a pulldown for box 12 with code S. Just enter all the info from the W-2 right into the worksheet. Should be a one-to-one match.

HV Ken

[Slappy Tax]

Also, be sure to review eligibility for a credit for retirement savings contributions via Form 8880. Your post indicates that you and/or your wife may be eligible for a credit. There's not enough information to know for sure, but there's enough information to make it worth looking into.

[Monkeyman]

You folks are great.

My wife and I really appreciate the help.

[Monkeyman]

Also, be sure to review eligibility for a credit for retirement savings contributions via Form 8880. Your post indicates that you and/or your wife may be eligible for a credit. There's not enough information to know for sure, but there's enough information to make it worth looking into.

Slappy Tax,

Thanks for the heads up. We can take this credit.

My wife was a part-time student in 2007, but the form

instructions indicate only full-timers are not eligible.

Correct me if I am wrong.

Also, thanks again for the info. I really appreciate it.

Monkeyman

[Eli]

My wife was a part-time student in 2007, but the form

instructions indicate only full-timers are not eligible.

Correct me if I am wrong.

Monkeyman

That is correct. The instructions say that if you were a 'Full-Time' student. http://www.irs.gov/pub/irs-pdf/f8880.pdf

Eli