Why are boxes 1 & 5 identical but box 3 much lower on W-2? (Massachusetts)

Thank you for explaining! That actually makes sense because I did have a pretty good year in 2018 with a large performance bonus. But I'm confused because I just double-checked my total earnings and they were about $142,000 that year. So if the limit was $128,400, then box 3 should show $128,400, right? But instead it shows around $47,000. That seems way off?

You're right to be concerned - if your total earnings were $142,000 and box 3 only shows $47,000, that's definitely not matching up with the 2018 Social Security wage base limit explanation. At this point, I'd recommend contacting your former employer's payroll department directly. There could be a legitimate explanation (like pre-tax deductions that affect Social Security wages differently), but it could also be a reporting error. If it's an error and they withheld too much Social Security tax, you would be entitled to have that money refunded.

Does it actually explain why the numbers are different or just point out that they are? I've got a similar issue with my W-2 and my employer is totally useless when I try to ask them questions about it.

I'm skeptical about these online services... how did they get your data to compare? Did you have to upload all your personal tax documents? Seems risky to share that kind of sensitive information.

It doesn't just highlight the differences - it actually explains why they're different by analyzing what specific deductions affected each box and what tax rules apply to your situation. In my case, it identified that certain retirement contributions were being excluded from Social Security wages but not Medicare wages, which explained the discrepancy. Regarding data security, they use bank-level encryption and don't store your documents permanently. You can also delete your data immediately after analysis. I was worried about that too, but their privacy policy is really clear about how they handle sensitive information.

Wait how does this actually work? Do they have some special line to the IRS or something? I've been trying to get through for weeks about a similar issue.

Yeah right. No way this works. The IRS phone system is designed to be impenetrable. I've been calling for months about an incorrect W-2 and never get through. Sounds like a scam to me.

They don't have a special line - they use an automated system that continuously calls the IRS for you and navigates the phone tree. When a human agent finally answers, that's when they connect you. It saved me from having to sit on hold for hours. It's definitely not a scam. I was skeptical too but it actually worked exactly as described. They only charge if they successfully connect you with an IRS agent. I spent weeks trying to get through on my own with no luck, then got connected within a couple hours using their service.

I did have a pretty expensive health insurance plan that was coming out pre-tax, plus I was maxing out my 401k that year. Could those really account for almost $95k difference between box 1/5 and box 3 though? That seems like a massive gap!

Health insurance premiums and 401(k) contributions typically reduce your Social Security wages, but $95k is an unusually large difference. Even if you maxed out your 401(k) at the 2018 limit ($18,500 plus any catch-up contributions if you were over 50), and had expensive health insurance (let's say $15,000-20,000 for a premium family plan), that would still only account for maybe $40,000 of the difference. If there's still a $55,000 gap unaccounted for, it's likely there was a reporting error. Another possibility is if you had some deferred compensation or special bonus arrangement that was treated differently for Social Security purposes. Either way, I would definitely contact your former employer for clarification.

Check if you contribute to a 457(b) plan. Those reduce your Social Security wages but not your Medicare wages. My wife works for the state and has this exact situation - big difference between box 3 and boxes 1/5 because of her 457(b) contributions and healthcare FSA.