W-2 after tax deduction for auto allowance & cell phone

[AZ-Tax]

This appears on the wage statement as: 6000.00- which I assume was deducted from something. So was $6000 of auto allowance given to the employee/taxpayer and then subtracted from employee/taxpayers gross wages. In that case can the TP deduct on form 2106?

[JG EA]

This appears on the wage statement as: 6000.00- which I assume was deducted from something. So was $6000 of auto allowance given to the employee/taxpayer and then subtracted from employee/taxpayers gross wages. In that case can the TP deduct on form 2106?

You don't mean actually on the W-2 but on a statement given to your client? You can sometimes tell if something was taken out by backing out the SS and Med amounts. So if someone had total wages of $50000 and the SS is $3100 you know any amounts taken out would prbably be after tax. If they had the same total wages, but in box 1 $48000 (& the SS amount is $3100 then you know $2000 was taken for retirement. If their total wages were $50000, with $2790 for SS and $652.50 for Med, and only $45000 is in box 1 you know how much was pre-tax.
So, take your SS amount and divide it by 6.2% (Medicare divide by 1.45%) and see if it matches the total wages on Year-to-date or a statement from the employer.

If it was subtracted from the employee's gross wages, and such a thing can't be pre-tax, then maybe they are counting it as a tool allowance somehow, maybe as an accountable plan. If this is the case read this:

http://www.irs.gov/businesses/article/0,,id=97388,00.html

and TTB 32-10
If that is the case then you certainly don't want to deduct the amount if a. the client didn't pay for it or b. it was not in wages - what to do then? First see if that is the case.

[FEDUKE404]

It's tough to determine

It's almost impossible to tell, without a year-end statement on hand, exactly how the numbers shown on a W2 were reached.

Most folks have 401(k) type stuff, and then pre-tax medical/cafeteria plans, as well as Dep Care Accts. Sometimes you can back into the numbers.....many times you cannot.

With the example cited, it could be the employee was paid a $500/month car allowance that would not be subject to FICA et al but has been included in compensation. If that's the case, I would try to cut into that amount with a Form 2106.

The flip side is I've seen employees (private investigators are notorious for this stuff) who receive a car allowance, it does NOT show up anywhere on the W2, and then they have a hissy fit when after a few questions I tell them they cannot deduct "all" of their travel expenses.

FE

[New York Enrolled Agent]

This appears on the wage statement as: 6000.00- which I assume was deducted from something. So was $6000 of auto allowance given to the employee/taxpayer and then subtracted from employee/taxpayers gross wages. In that case can the TP deduct on form 2106?

Is the amount in box 12 of the W-2 with a code of L?

[gkaiseril]

Is this the personlal use inclusion amount for an employer provided car?