By Ayushi Jain
Dec 22, 2018
Posted in Tax Software Hosting
In the previous blog of Tax Season 2019 Ultimate Guide, we talked about choosing the right filing status, and now we will dwell into Form W-2, the Wage and Tax Statement to ensure you make no mistake while reporting the wages you earned and the taxes you paid.
Form W-2 is one of the most crucial documents at the tax time, which states the wages you earned and the taxes you paid. Employees can also refer W-2 Form as an output document received from employer’s end, summarizing employee’s total Gross Earnings, Social Security Earnings and Medicare Earnings. It is more like a ritual that every employer in the U.S. must follow. The basic purpose of this form is to provide all the information to employees that need to be included in their income tax form.
You can directly get your W-2 Form by sending an online request to the IRS or, can purchase it from a copy shop. Some advanced tax software programs including Drake Cloud also incorporates W-2 Form and allow taxpayers to file it directly from the platform. Last but not least, you can also fetch your copy of the W-2 Form from your tax preparer.
Note: You should use the official forms as the Copy A of the W-2 Form is printed on special paper. Hence, copying it from the internet won’t help you much.
The ‘W’ in your W-2 Form stands for ‘withholding’, and the form is used to report the taxable income. The exact format of your W-2 Form actually depends on the way your employer processes payroll, which means that it comes in different sizes, shapes and formats. However, the information it carries is quite same regardless of anything. Let’s start with the items listed on your W-2 Form!
There are six lettered boxes (A to F) present on your W-2 Form, each one of which conveys your identifying information: your Social Security number, your employer’s tax ID number or EIN, everyone’s addresses and full legal names. Box D, reads as Control Number, is the only lettered box that identifies your Form W-2 document among the piles of employer’s records. It is kind of a unique number.
Learn what each lettered box tells about you:
Note: In case, your name has changed or, you’ve shifted to a new address, talk with your HR to update your records.
Where on one hand, the lettered boxes record your personal information, the numbered boxes on the other records your financial information. There are 20 numbered boxes in total on your W-2 Form. Let’s understand what each numbered box tells about your finances:
W-2 Form is not a single page form instead it is a six-part federal Wage and Tax Statement that needs to attach with different documents as per the IRS guidelines. The six multipart and their attachment are as follows:
The employer must prepare W-2 Form for their employees as it reports their annual earnings along with the tax withholdings. It is mandatory for every employer to prepare one form and pass the copies to the Social Security Administration. Once, the information is checked by SSA it passes on to the IRS. Employers must complete and mail the form to their employees latest by 31st Jan every year.
You need to hand over your W-2 form to the Social Security Administration by the end of February. In case you have 250 or more forms with you, then you can submit them online to the SSA.
Ayushi Jain is a writer based out of New Delhi who is interested in how new technologies, innovations and disruptive business forces are shaking things up across the globe. Her focus extends to topics that include Cloud Computing, Data Security, Artificial Intelligence and tax season updates.
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