Question

On Form W-2, which box is matched with its use?

A. Box 7--Allocated tips
B. Box 12 (Code I)--Nontaxable sick pay
C. Box 12 (Code J)--State agencies that report only Medicare wages
D. Box 8--Allocated tips

Answer 1

The W-2 form's Box 8 is correctly matched with its use for reporting allocated tips. Neither of the Box 12 codes provided (I or J) correspond with the descriptions given for their usage on standard W-2 forms.

Step-by-step explanation:

The question asks about specific boxes on Form W-2 and their respective uses. Among the provided options, Box 7 and Box 8 both relate to allocated tips. Box 7 is not present as an option but the description of Box 8 correctly matches its use. It is meant for reporting allocated tips that the employer assigns to an employee in addition to the tips the employee reported to the employer. For the Box 12 options given, neither Code I nor Code J is correctly matched. Code I pertains to the small business health care tax credit and Code J is for non-taxable sick pay, but these details are not part of the standard W-2 explanations. Therefore, Option D, Box 8--Allocated tips, is matched with its use correctly.