Eric, your friend, received his Form W-2 from his employer (below) and has asked for your help.

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Eric, your friend, received his Form W-2 from his employer (below) and has asked for your help. Eric’s 2018 salary was $145,000 and he does not understand why the amounts in Boxes 1, 3 and 5 are not $145,000? His final paycheck for the year included the following information: 

  • Eric contributed 5 percent of his salary to the company 401(k) plan on a pre-tax basis. 
  • Eric is married with two children. He had $5,000 deducted from his wages for a Dependent Care Flexible Spending Account. 
  • Eric is enrolled in the company-sponsored life insurance program. He has a policy that provides a benefit of $145,000. 
  • Eric contributed $2,500 to the Health Care Flexible Spending Account (he keeps forgetting that the maximum deferral has increased over the years). 

Using the information and Eric’s Form W-2, prepare an email to Eric reconciling his salary of $145,000 to the amounts in Boxes 1, 3, and 5. 


a Employee's social security number 791-51-4335 Safe, accurate, FAST! Use Visit the IRS website at IRSe file www.irs.gov

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Related Book For  book-img-for-question

Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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