Thank you for your reply George4Tacks. In checking the yearend paystub against the W2, the employer did not include the excess above 5000 in taxable wages Box 1, as you and I agree should have been done. So the bottom line is to analyze the taxpayer's paystub, to see if the excess has been added to W2 Box 1 wages, or not, and then exclude, or include, the excess as taxable on Line 1e of the 1040 (flowing from the 2441).