Important Things you Should Know about Form W-2
Most people seem to hate tax season for various reasons. That is because many people experience a lot of stress during this time. Lack of preparedness is usually the main reason for this. It is important to know every little detail about filing your taxes.
Unfortunately, not too many people procrastinate on matters to do with taxes. As an employee, you must have found a form with several tiny boxes in the mail around January or early February. This form is not a bill, but a W-2 form. If you made at least $600 from an employer in a year, they are legally obliged to send this form to you.
Initially the form was referred to as the wage and tax statement. The form shows how much an employer has compensated you with for your work. The form is vital because the data in it will determine whether you are getting a refund or writing a check. Below are some things you need to know about the W-2 form.
You need from to Do Taxes
You should know about all forms required for your taxes. One of these forms is the W-2. This form is essential when doing taxes. The form will tell you how much you have earned in the year that has passed. On top of this, you get to see how much tax you paid in that year. You need to fill in a lot of details in this form.
The form Deals with More than One Thing
Of course, your W-2 shows the amount you made in wages and tips. Nevertheless, the form also details other information. Some of these things include the contributions you made towards your retirement during the year and amount paid towards health insurance by your employer.
The W-2 form is Not a Secret
Employers are required by the law to send copies of the W-2 form to the SSA, and your local tax authorities. That means, you cannot get away with any taxes you need to pay by simply hiding the forms. You will only be adding to your headache by getting several letters from the tax authorities. You may also get some letters from your state if the state has income taxes.
Your Employer needs to send you a W-2 before February
All employers are required by the government to send the forms to relevant parties by 31st of January. By week one of February employees need to have their W-2 forms in the mail. Employers can easily create the forms online using W-2 form generators.
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