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What's NOT On Your W-2 This is an Alert ... Does this affect you?? Have you thrown away $1,000? I am coming across reports from colleagues who tell me that many W-2s are not reporting the amount employees are contributing to retirement plans. Or not reporting the correct amount. Why is this a problem? The new Retirement Contribution Savings Credit is based on the amount of money you have contributed to retirement plans at work &/or to IRAs. You may get a tax credit (a direct reduction of your actual taxes due) worth up to $1,000.00 With the erroneous or in complete W-2s, both you and your tax preparer are overlooking a big tax credit for your return. Don't blame your preparer. Most of us don't realize the error, so we're not even asking the question. In some cases, the companies/government agencies will include the regular deferred compensation withholding, but won't include the amount contributed by the employee to the pension plan. For example - one of the biggest employers in Los Angeles, the Los Angeles Unified School District - shows the deferred compensation amount. But nowhere can you find the annual CALPERS (state of California pension system) contribution. In fact, there isn't a year to date amount on the employees' checks either. Note: Income Limits to Qualify for the contribution: Joint: $50,000 Head of Household: $37,500 Single: $25,000 Publish this - and expect employers to be deluged with calls. And expect lot of amended returns. [Initial Source: Fred W. Fetner, Jr., EA wyse@cetlink.net Rock Hill, South Carolina ]

Library of Congress -  ISSN 1532-0790 Copyright © 2000-2009 - Eva Rosenberg

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