W-2 - Box 1 and Box 3 differences
Answer:
The amount in Box 1 can be unlimited but the amount in Box 3 and 7 should never exceed $ 106,800 in 2011. Also;
Elective salary deferrals to a 401(k), 403(b) Simple, Salary reduction SEP as well as payments of adoption expenses and deferred amounts under a nonqualified plan or 457 plan are included in Box 3 and not in Box 1 Taxable wages.
Elective salary deferrals to a 401(k), 403(b) Simple, Salary reduction SEP as well as payments of adoption expenses and deferred amounts under a nonqualified plan or 457 plan are included in Box 3 and not in Box 1 Taxable wages.
