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Friends:

Assuming that the $5,000 was grossed up for federal and state income tax, payroll tax, etc. the $5,000 net is still not "tax free" in the sense that one just forgets about it like a gift from Aunt Sue. I would assume that the W-2 would include the grossed-up amount as wages and the taxes paid by the employer in the respective boxes for taxes. Right?

Will
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