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Say somebody makes 100k a year and reports that to AMEX. But they contribute 15K a year to their 401k, essentially making their taxable income 85k. Would Amex forgive this or would they pretty much say you lied about your income?
That's a rather strange question!
Of course your income is correctly stated as $100K. If you are concerned about 401K, what about income taxes as well, they usually cause a much greater reduction in take-home pay.
If your employer pays you X, that is your salary....
I am no expert but just because you dont pay taxes on that 15k, that doesnt mean it isnt income. And, I dont recall Amex asking me for taxable vs non taxed
If they ask for your income that was 100k
@bs6054 wrote:That's a rather strange question!
Of course your income is correctly stated as $100K. If you are concerned about 401K, what about income taxes as well, they usually cause a much greater reduction in take-home pay.
If your employer pays you X, that is your salary....
I was just wondering because your W2 would show different than what you claimed. Your w2 wouldn't show 100k.
Well, the W2 does, you just have to look in various places on the form
Looking at my w2 (federal one):
box 1 wages, tips
box 3 social security wages
box 5 medicare wages
you can see the following
box 1 (wages - 401k contribution)
box 3 & 5 (wages + 401k contribution)
So if amex has issues with your wages then this is what they are going to see.
Of course if they are looking at box 1 you can instruct them to look at box 12 which will have a code D which is your 401k contribution
Income in this context is always gross income (before taxes, contributions, etc). Their financial models already take into account that $100K really isn't $100K you take home.
Thanks a plenty mil mascara