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I have limited experience or a lack of confidence. Any guidance would be helpful.
I believe the W2 is incorrect and before I request a W2C to be prepared I want to be sure.
Box 1 currently contains his gross salary. I believe it should be reduced by the amount of the housing allowance. Example $77400 less Housing Allowance $30000 = $37400. Later I will ask about how this impacts SE Tax, Child Tax and Earned Income Tax Credits.
Box 2 Tax Withheld Not sure if this was based on the Gross or Net amount of the Housing Allowance but I believe it should be based on the net amount.
Box 3 and 5 Social Security and Medicare Wages should be blank Box 4 and 6 tax withheld should be 0 but it is not. How do I reflect this on the tax retrun or does the organization need to file an amended 941X?
Box 14 I believe should reflect the housing allowance of 30000.
Box 15 'box 16 and box 17 State income and tax for PA I believe should be the gross income of .0307 %. PA does not exempt housing allowance for tax withheld.
Box 18 and 19 local tax. Based on the website and a conversation with an employee of the local tax office. This should reflect net amount of the housing allowance. When the local return is filed a refund should be due.
I recognize this is a lot of detail and I hope someone in the community can guide me so as to avoid any challenges after filing the return and to have future withholding and W2 to be done correctly.