Filing Taxes W2 Form | California Schedule W 2 Form | Box 14 On W2 Form Instructions | Box 11 On W2 Form
Each January, millions of Americans wait by their mailbox for that little envelope with their W-2 inside. It’s a special day when it arrives as this is typically the final piece needed to complete your tax return, with some exceptions, of course.
What is a W-2? (W-2 Tax Form Defined)
IRS Form W-2 is also known as the Wage and Tax Statement because it does just that, reports your wages and taxes withheld from your paycheck. This document is required by employers to send to each employee and to the IRS at the end of each year. A W-2 employee is a person who has an employer that deducts taxes from their paychecks and submits this information to the IRS.
W-2 Instructions
When preparing your taxes, you will need this form to report your income, and taxes withheld from your paycheck. This form is important as it shows what taxes you have already paid into the system. Certainly no one wants to pay twice.
How to Read a W-2 Tax Form
To start, every W-2 has the same information and reads the same way, no matter the employer. The information starts at the top and is separated into Federal and State taxing sections as you will also need to pay taxes in your state, unless you are in a state where there is no income tax. Here, let’s go through them together.
Boxes A through F
These lettered boxes on a W-2 include:
- Your name – Always check to make sure it’s correct.
- Your address – Always check to make sure it’s correct.
- Name and address of your employer
- Your social security number – Always make sure it’s correct.
- Your employers EIN and state ID numbers
Boxes 1 and 2
Box 1 shows your taxable income, such as wages, tips and other compensation, such as bonuses. Box 2 shows the amount of Federal taxes withheld from your pay.
Boxes 3 and 4
Box 3 shows what amount of your earnings were subject to Social Security tax.
Box 4 shows what amount was withheld for that tax.
Boxes 5 and 6
Box 5 shows what amount of your earnings were subject to Medicare taxes.
Box 6 shows what amount was withheld for that tax.
Boxes 7 and 8
Box 7 shows what amount of earnings you reported to your employer in tips.
Box 8 shows what amount your employer reported in tips paid to you.
Box 9
This box will remain blank as it was used previously to reflect a tax perk that is no longer available.
Box 10
Box 10 reports what amount you received from your employer in dependent care benefits.
Box 11
Box 11 reports what amount of deferred compensation you received from your employer in a nonqualified plan.
Box 12
Box 12 reports numerous types of deferred compensation types. For example, Uncollected Social Security or Medicare tax on tips, or cost of group-term life insurance or 401(k).
Box 13
Box 13 reports income that is not subject to federal taxes. This could include payments from an employer-sponsored retirement plan or an insurance policy.
Box 14
Box 14 allows the employer to report any additional tax information that would not be included in the other boxes. This would include taxes withheld for disability insurance or union dues.
Boxes 15 through 20
The boxes are the last boxes on the form, and all pertain to state and local taxes. Similar to boxes 1-6 above, it reports how much income is subject to these taxes and what amounts were withheld.
Filing Your Tax Return
Upon receipt of your W-2 you are ready to file your return. Whether you are using software, a tax preparer or by hand, all the information contained on this form will assist you in completing an accurate detail of your wages.
Correcting W-2 Tax Form Mistakes
As always when it comes to your taxes, review the information on this form to ensure it is correct. Is it your name and address? Is it your correct Social Security Number? If you notice even a decimal out of place, it’s important to inform your employer right away. It may take a little extra time to receive a corrected W-2, but it will be worth the wait. Worst case is to go back to your last paystub received and determine the amount of taxes that were withheld. You can file an extension, but if you will owe you need to know the amount as you’ll need to pay that in full by April 15th.
What if I Didn’t Receive a W-2 Tax Form?
If you are waiting and waiting and it’s now the end of February and you still don’t have your W-2 Form, it’s time to contact your employer. They are human and sometimes there are mistakes made.
Verify your employer has your correct address. Verify one was prepared and sent. If somehow you were forgotten or a change of address needs to be made, it’s fine to do so, but make sure it’s done right away.
As mentioned above, worst case is to go back to your last paystub received and determine the amount of taxes that were withheld. You can file an extension, but if you will owe you need to know the amount as you’ll need to pay that in full by April 15th.
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