Cordell, 401 K, Ninety Six Thousand Dollars discussed on Bucket Strategy Investing

Automatic TRANSCRIPT

W two it is it's not in any of the boxes is it votes in bucks twelve with at least a notification bus but if you ever look at your w two and you wonder why there's three boxes with your income in it three boxes with tax withholding it it box one is your taxable wages bucks to or the taxes withheld for federal in compacts purposes the bucks a lot of times is a larger number than box one because those years social security wages and those are the wages that are before you take your 401 k deduction is so the difference between those two is in some cases the 401 k deduction and then there's box five which is your medicare wages which is all of your wages not capped off for the wagebase or anything and you get the pay medicare on everything so there's different boxes and they have different amount depending upon how much income you make cordell make and how much you've contributed or don't contribute to your 401 k but so there's the difference between box one and the other boxes is your 401 k but if you're paying for medical insurance you know you have an out of pocket deduction on your your tax return for your share of your group health coverage now that doesn't show up in any of the boxes in a show up later on as the it has a footnote it's a weird thing so if you have what let's say let's say you make you know let's say you're grow your view of your pay the same eight grand a month so it's ninety six thousand dollars that's what you get that your gross pay that right real action real you don't make any more than that that's your gross.

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