Box 1-Wages, tips, and other compensation. This amount is your final 2023 pay stub gross wages, deductions for TSA 403(b) and 457(b) - Box 12; retirement/pension - Box 14; dependent care - Box 10; health insurance; and medical reimbursement program (Maximum $3,050); PLUS imputed premium for group term life insurance coverage over $50,000 - Box 12; and miscellaneous income (Auto allowance, auto usage, academic leave retirement contributions paid by MCPS, and includable moving expenses).
Box 3-Social Security (OASDI) wages (maximum $160,200). This amount is your final 2023 pay stub gross wages LESS deductions for dependent care - Box 10; health insurance; and medical reimbursement program (Maximum $3,050); PLUS imputed premium for group term life insurance coverage Box 12; and miscellaneous income.
Box 5-Medicare wages and tips (no maximum). This amount is your final 2023 pay stub gross wages LESS deductions for dependent care - Box 10; health insurance; medical reimbursement program (Maximum $3,050); PLUS imputed premium for group term life insurance coverage - Box 12; and miscellaneous income.
Box 10-Dependent care benefits - deduction for 2023. (Maximum $5,000 for single filers and married filing jointly; $2,500 if married and filing separately).
Box 12-Adjustments to wages (amounts added/subtracted). Code C premium for life insurance greater than $50,000 = imputed group term life insurance income; Code E, TSA = 403(b) tax sheltered annuity deduction; Code G, 457(b) deferred compensation plan; Code DD, Cost of Employee and Employer health coverage. The amount reported with Code DD is not taxable
Code C Group Imputed Premium for Term Life Insurance Coverage over $50,000 Premiums (Insurance 50K+) For employees in the benefit plan with a base salary of more than $25,000, the cost of the life insurance premium for more than $50,000 coverage paid by MCPS (less any amount paid by the employee) is included as taxable wages on the W-2. Items affected are Box 1—Wages; Box 3—Social Security wages; and Box 5—Medicare wages. Social Security taxes withheld are reflected in Box 4, and Medicare tax withheld is reflected in Box 6.
Code E Tax-Sheltered Annuity (TSA)—403(b): TSA deductions are exempt from federal and Maryland income taxes. Non-Maryland residents should check the income tax regulations for their states. TSA deductions are shown in Box 12 403(b).Limits on Elective TSA: The cap on TSA contributions is $22,500. Those age 50 or older by year-end may contribute an additional $7,500, making their combined contribution limit $30,000 in 2023. Please check with your TSA representative regarding this exception and any changes to calendar year 2023 year limits.
Changes to TSA: PLEASE REVIEW YOUR TSA DEDUCTIONS AND LIMITS. To make changes in your TSA, forward your request to your carrier. After review and approval, it will be sent to ERSC.Code G 457(b) Deferred Compensation Plan deductions are exempt from Federal and Maryland income taxes. 457(b) deductions are shown in Box 12.
Limits on 457(b): In 2023, employees may contribute 100 percent of salary up to $22,500 to a 457(b) plan. Those age 50 or older by year-end may contribute an additional $7,500, making their combined contribution limit $30,000 in 2023. Please check with your TSA representative regarding this exception and any changes to calendar year 2023 limits.
Box 13-Retirement Plan will be marked if you were an “active” participant in the MCPS and/or state retirement/pension plans during any part of the calendar year, or if you had 403(b) deductions.
Box 14-Other (amounts subtracted from gross wages). Code STPICKUP, State Retirement/Pension Employee Contribution; Code STPICKUP has been subtracted from gross wages in box 1 only.
Non-Elective Retirement/Pension Employee Pretax Contributions (State)
This data is being provided for information purposes only. None of the published IRS codes are applicable when preparing tax returns using PC software. The amount shown has already been deducted from Box 1—Wages, tips, other compensation.
District of Columbia, Pennsylvania, Virginia, West Virginia residents only:
Code STPICKUP displays employee contributions, if any, to the state retirement/pension systems.
Maryland residents only:
Code STPICKUP Maryland state retirement pickup amount $X,XXX.XX. If you are a member of the retirement/pension systems and are receiving a Maryland W-2, the display of this item is for the Maryland State Income Tax Division. While this amount is deferred for federal purposes, it is not for the state of Maryland. The Maryland state income tax return requires federal adjusted gross income to be used as a starting point. The state pickup amount is added back to gross income at a different point within your Maryland state income tax return.
Box 16–State Wages, Tips, etc. Maryland, District of Columbia, Virginia, and West Virginia Residents: These states/district income tax forms require the federal adjusted gross income from your completed federal income tax form to be used as the starting point in order to obtain the required state/district starting gross income data.
Pennsylvania residents: The W-2s will display a state gross amount in Box 16 because Pennsylvania taxable income regulations do not adhere to federal regulation as do the previous jurisdictions.
Box 17-State and Local Income Tax: State income tax and local income tax withholdings have been added together to obtain total taxes and are displayed in Box 17.