Final answer:
The amount of wages on the W-2 is $45,890. Option D is correct.
Step-by-step explanation:
Calculating the amount of wages on a W-2 involves adding up all forms of compensation received from an employer throughout the tax year. Here's a breakdown:
- Gather Income Information: Collect all pay stubs, earning statements, or any other documents that detail your earnings for the year.
- Identify Box 1 on the W-2: This box typically contains the total taxable wages, tips, and other compensation received for federal income tax purposes.
- Include Taxable Income: This encompasses various forms of compensation, such as salary, wages, bonuses, tips, and other taxable income. Ensure that you add up all these figures accurately.
- Account for Deductions: Some pre-tax deductions, like contributions to retirement plans or certain benefits, might reduce the taxable wages. These are usually listed separately on the W-2.
- Check for Additional Income: Some sources of income might not be listed on the W-2, such as income from freelance work or interest from investments. These would need to be included when calculating total income for tax purposes.
- Total the Amounts: Add up all the income sources to get the final figure representing wages and compensation to report on the W-2.
In this case, the total wages reported amount to $45,890, reflecting the individual's earnings within that tax year. It's important to cross-reference this information with other sections of the W-2, such as taxes withheld for federal, state, and local purposes, to ensure accurate reporting on tax returns.
Correct answer: $45,890 (Option D)