Message Font: Serif | Sans-Serif
No. of Recommendations: 0

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?

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.