What do you look at on your w2
If you work for an employer, then your employer withholds income taxes from each of your paychecks. Every January or early February, you should receive a Form W-2 Wage and Tax Statement from your employer that lists exactly how much money you made the previous year, how much went to tax withholdings and how much of it went to federal taxes as well as state taxes. Form W-2 is called an informational return because it informs several important parties about your earnings and amount of taxes paid for the year:. Note : you are required to attach your copy of your Form W-2 to your tax return. If you e-file using TaxAct then your Form W-2 information is sent along with your tax return.
How to read a W-2 earnings summary
Form W-2 is a crucial document at tax time. Taxes are withheld by your employer and paid in to federal and state taxing authorities if a company reports with a W The form also includes Social Security and Medicare.
Employers must prepare a Form W-2 for each eligible employee and provide copies to the Internal Revenue Service and to the Social Security Administration. Boxes A through F are all identifying information : your Social Security number, your employer's tax ID number or EIN, everyone's addresses, and their full legal names.
Ask your company to update its records if your name has changed. It shouldn't be a complication if you've recently moved and your address has changed, as long as your tax return bears your current, correct address.
The same rule applies if you're married and filing a joint return and both you and your spouse have W-2s. The number includes your wages, salary, tips you reported, bonuses, and other taxable compensation.
Taxable fringe benefits such as group term life insurance are included here, but Box 1 does not include any pre-tax benefits such as savings contributions to a k plan, b plan, or health insurance. The lines noted here apply only to the tax return.
They're not necessarily the same as those that appear on the and tax returns because the IRS has redesigned the form twice since This "wage base" is adjusted annually to adapt for inflation.
Check with your employer if Box 3 shows an amount over the wage base. Tips that you've reported to your employer should not be included in Box 3. Again, check with your employer if the number that appears here is more. There's no maximum wage base for Medicare. It will be empty if you didn't report any tips. The amount from Box 7 is already included in Box 1. This amount is not included in the wages that are reported in Boxes 1, 3, 5, or 7.
Box 9 should therefore be empty. Dependent care benefits are reported on Form The amount in Box 11 is already included as taxable wages in Box 1. Ask your employer to determine what the code means. This means that you would report the wages from this W-2—and any other W-2 forms you receive that are marked "statutory employee"—on Schedule C of Form These boxes will also be checked if you participated in your employer's retirement plan during the tax year.
Sick pay is not included in your Box 1 wages, although it is usually subject to Social Security and Medicare taxes. Some employers will report certain state and local taxes in Box Ask your employer if you're not sure what the code in Box 14 stands for. There might be multiple lines of information here, too, if you worked for the same employer in multiple states. The description might identify a particular city or it might identify a state tax such as state disability insurance SDI payments.
You might want to verify that your information is correct near the end of the tax year to avoid problems as tax time draws near. This is a serious situation. Politely demand a copy if the company is still in existence. You should also be able to provide at least an estimate of the wages you earned, the federal income tax that was withheld, and the dates that you began and ended employment if you're no longer working there.
By using The Balance, you accept our. The Balance Taxes. By Full Bio Follow Linkedin. Follow Twitter. He worked for the IRS and holds an enrolled agent certification. Read The Balance's editorial policies.
Reviewed by. Full Bio Follow Twitter. Janet Berry-Johnson is a CPA with 10 years of experience in public accounting and writes about income taxes and small business accounting for companies such as Forbes and Credit Karma.
Article Reviewed on January 18, You should receive three copies of your W Copy B, C and 2. This is officially your copy. Otherwise, keep it with your tax documents for at least four years as you would with Copy B. The numbered boxes on Form W-2 record your financial information. The number that appears in Box 1 is reported on line 1 of the Form Make sure you have certain information at your fingertips when you call the IRS:.
Article Table of Contents Skip to section Expand. W-2 Obligations for Employers. W-2 Obligations for Employees. Copies Employees Should Receive. What the Lettered Boxes Mean. What the Numbered Boxes Mean. State Tax Information. Article Sources. Continue Reading.
What do the W-2 Boxes and W-2 Form Codes mean?
A W-2 reports the employee's annual wages and the amount of taxes withheld from their paychecks. A W-2 employee is someone whose employer deducts taxes from their paychecks and submits this information to the government. An employer is legally required to send out a W-2 form to every employee to whom they paid a salary, wage, or another form of compensation. This does not include contracted or self-employed workers , who must file taxes with different forms. The employer must send the employee the W-2 form on or before Jan.
When you earn income in America, you are responsible for paying federal income tax, Social Security tax, and Medicare. These are your withholdings. These are different for each state. Find out about the tax laws in your state. To figure out if you can get money back a.
Understanding Your Tax Forms: The W-2
A W-2 tax form shows the amount of taxes withheld from your paycheck for the year and is used to file your federal and state taxes. Here are the basics. Updates include an extension until July 15, for all taxpayers that have a filing or payment deadline that normally falls on or after April 1, and before July 1, Your W-2 also reports the amount of federal, state and other taxes withheld from your paycheck. As an employee, the information on your W-2 is extremely important when preparing your tax return. To insure you have it in time, the IRS requires your employer to send you a W-2 no later than January 31 following the close of the tax year, which is usually December You should only receive a W-2 if you are an employee. If you are an independent contractor or self-employed, the work you do may be the same as an employee, but you will receive an earnings statement on a Form rather than a W The W-2 form is divided into boxes that report various items relating to your income. In box 1 of the W-2 you will find your annual wage and salary payments with the amount of federal tax withheld from it in box 2.
How to Read Your W-2
A paper copy of your W-2 form from Walmart will be available by January If you choose to receive it electronically, you can get it even sooner. For step-by-step directions on how to get your W-2 form electronically, visit the Online W2 page on OneWalmart. Have additional questions?
Employees use Form W-2 to prepare their tax returns. Form W-2 shows more than just what you were paid. Box 8: Shows the amount of other tips your employer allocated to you.
What Is W-2 Form and How Does It Work?
A W-2 will be issued to any full or part-time employee that receives a payment through Justworks. It will state the total amount of income received as well as all federal, state, and local taxes withheld. Each box on your W-2 will contain information that can be identified in the below list.
If this is your first time registering, please check your inbox for more information about the benefits of your Forbes account and what you can do next! Each year about this time, mailboxes across America are filled with tax forms. Sometimes, those tax forms go straight to a tax professional, unopened. Other times, taxpayers may dutifully open those forms and type the information, box for box, into tax preparation software. In both cases, it's not unusual for taxpayers to not have an understanding of the meaning of all of the numbers, letters and other information on those forms.
Get Your W-2 Statement Electronically
Get the latest info. Box 1 — Shows your wages, tips, prizes, and other compensation for the year. Include this amount on the wages line of your return. Box 2 — Shows the total federal income tax that was withheld from your paycheck for the year. Include this amount on the federal income tax withheld line of your return Form , line Box 3 — Shows your wages subject to Social Security tax.
Yes, but an actual copy of your Form W-2 is only available if you submitted it with a paper tax return:. If you e-filed your tax return or you didn't attach your Form W-2 to your paper return, then use one of the transcript options above. Otherwise, you'll need to contact your employer or SSA for a copy. See Topic for additional information.
What is a W-2 Form?
A W-2 form is a statement that you must prepare as an employer each year for employees, showing the employee's total gross earnings, Social Security earnings, Medicare earnings, and federal and state taxes withheld from the employee. The purpose of this form is to provide the employee with information that must be included in their income tax form. Give it to employees by the end of January of the year following the tax year.
Just got your first W-2? Here’s what it means