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Annabelle Is Employed as an Administrator for GRM Industries

question 42

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Annabelle is employed as an administrator for GRM Industries. She noticed that her Box 1 and Box 3 amounts on her W-2 were different. Annabelle is employed as an administrator for GRM Industries. She noticed that her Box 1 and Box 3 amounts on her W-2 were different.   What is a reason why the amounts in boxes 1 and 3 would be different? A)  Annabelle received tips, which are not subject to Social Security taxes. B)  Annabelle has contributed to a pre-tax 401(k)  that reduced her taxable wages. C)  Annabelle changed her withholding allowances on her W-4. D)  Annabelle's wages were subject to a pre-tax garnishment. What is a reason why the amounts in boxes 1 and 3 would be different?


Definitions:

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