What is a W-2 form? This document is very important when doing your taxes at the end of the tax year. Most types of employees will receive this form from their employers with the exception of freelancers or independent contractors who receive a 1000- MISC form.
We’ve put together this basic guide to show you how to understand the information on your W-2.
Identifying Information
Typically boxes A-F on your W-2 will be filled with your identifying information. This should include your full legal name, social security number, your employer’s EIN (employer identification number), addresses for you and your employer, etc.
It’s important to make sure this information is all correct. If you notice any mistakes be sure to notify your employer as soon as possible. This could cause problems when trying to file your taxes particularly if you plan on using a professional to file.
Financial Information
The numbered boxes on your form will contain the financial information you will need in order to file your taxes. This information includes the amount of money you’ve made from your employer in the last year. It also includes information on how much your employer has withheld for taxes on your behalf.
Also included is how much has been withheld for social security and Medicaid. It also shows the amount of any state or local taxes. If you make regular deposits to any retirement accounts through your employer it will also show how much you’ve paid in.
If you work in a tipped position your W-2 has a section to display the amount of tips that you’ve claimed to your employer. It also shows any money you’ve been reimbursed for covered expenses for childcare, flexible spending accounts, or healthcare plans.
While this is a good tool to have at tax time its important that you also make your own financial records just in case.
How to File Taxes with Your W-2
Regardless of whether you file your taxes online or you go to a professional, it’s good to know how this information is being used to file your yearly taxes. Each box on the form corresponds to a question on the form 1040 and 1040 EZ. You simply enter the information from the appropriate boxes from your W2 form.
So What Is a W-2?
Put simply, a W-2 is just a form that gives you basic information about your employer, the amount of money you make through your job, and the amount of money you have already paid in taxes for the year.
Be sure to check out https://www.paystubcreator.net/w2-form-create/company-information
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