W-2 Form Overview: Line-by-Line Guide to Form W-2

What Is shape W-2 : engage and Tax Statement ?

Form W-2, besides known as the Wage and Tax Statement, is the text file an employer is required to send to each employee and the Internal Revenue Service ( IRS ) at the end of the class. A W-2 reports employees ‘ annual wages and the come of taxes withheld from their paychecks. A W-2 employee is person whose employer deducts taxes from their paychecks and submits this data to the politics .

Key Takeaways

  • Form W-2 reflects your income earned and taxes withheld from the prior year to be reported on your income tax returns.
  • Employers use W-2s to report FICA taxes for employees.
  • The IRS also uses W-2 forms to track individuals’ tax obligations.


W-2 Form

Who Files Form W-2 : engage and Tax Statement ?

An employer is legally required to send out a W-2 shape to every employee to whom they paid a wage, wage, or another form of recompense. This does not include contract or freelance workers, who file taxes with different forms. The employer must send the employee the W-2 form on or before Jan. 31 each year, so that the employee has ample time to file income taxes before the deadline ( which is April 15 in most years ) .

Employers must besides use W-2 forms to report Federal Insurance Contributions Act ( FICA ) taxes for their employees throughout the year. By the goal of January, employers must file, for the former year, Form W-2, along with Form W-3, for each employee with the Social Security Administration ( SSA ). The SSA uses the information on these forms to calculate the Social Security benefits to which each worker is entitled .

tax documents are filed for the previous year. For case, if you receive a W-2 form in January 2022 it reflects your income earned for 2021 .

How to File Form W-2 : wage and Tax Statement

If you are an employee of a company and will receive a W-2 for your income taxes, it will be sent to you automatically each year by your employer. Your employer will besides submit a transcript of your W-2 with the IRS .

The information provided on Form W-4 ( or sometimes Form W-9 ) when you are first hired provides the information your company needs to keep lead of payroll, tax withholding, employer-provided benefits, and pre-tax contributions to things like a 401 ( thousand ) retirement plan. The W-4 form tells the employer the sum of tax to withhold from an employee ‘s paycheck based on the person ‘s marital status, total of allowances and dependents, and other factors .

When you prepare your income taxes, you will need to input the data found on your W-2 into a mannequin 1040 individual tax return, either by hand or electronically. on-line tax preparation software now allows you to directly import the information on your W-2 from your payroll provider in many cases .

What information Does Form W-2 : wage and Tax Statement Include ?

Every W-2 has the like fields, no matter the employer. W-2 forms are divided into department of state and federal sections since employees must file taxes on both levels. Some fields provide the employer ‘s data, including the ship’s company ‘s Employer Identification Number ( EIN ) ( federal ) and the employer ‘s state ID count. The remaining fields are largely details of the employee ‘s income from the previous year .

The employee ‘s total earnings from the employer for the year are recorded, along with the amount withhold in taxes from the employee ‘s paychecks, separated into the withholding for federal income tax, Social Security tax, and more. If the employee besides works for tips, a airfield shows how much money in tips the employee earned for the year .

If you work multiple jobs that provide W-2s, you need to input each individually .

When the employee files taxes, the sum of tax withhold according to the W-2 form is deducted from their crying tax obligation. If more tax was withheld than owed, a refund will be issued .

The IRS besides uses Form W-2 to track an employee ’ mho income and tax indebtedness. If the income reported on an employee ’ sulfur taxes doesn ’ deoxythymidine monophosphate match the income reported on the Form W-2, the IRS may audit the taxpayer. however, taxpayers are required to report all wage, engage, and gratuity income even if that income is not reported on a W-2 .

How to Read Form W-2 : engage and Tax Statement

W-2 forms include both number and letter boxes that an employer must fill out and reflects how much you earned and taxes withheld .

Form W-2 (2022)

Boxes A through F

The letter boxes on a W-2 include the name and address of you and your employer, your Social Security number, and your employer ‘s EIN and state ID issue .

Boxes 1 and 2

Box 1 shows your taxable income, including wages, wage, tips, and bonuses, while Box 2 shows how much federal income tax your employer withhold from your pay .

Boxes 3 and 4

Box 3 details how much of your earnings were subject to Social Security tax and Box 4 the sum of Social Security tax that was withheld .

Boxes 5 and 6

Box 5 spells out how much of your pay is subject to Medicare tax and Box 6 how much was withheld. The employee helping of the Medicare tax is 1.45 % .

Boxes 7 and 8

If partially of your give is in the form of tips, these boxes show how much you reported in tips ( Box 7 ) and how much your employer reported in tips it paid to you ( Box 8 ) .

Box 9

This box was used to reflect a now-defunct tax perk up, so it is left empty .

Box 10

Box 10 reports how much you received from your employer in dependant wish benefits ( if applicable ) .

Box 11

This box details how a lot deferred compensation you received from the employer in a non-qualified plan .

Box 12

Box 12 details other types of recompense or reductions from your taxable income and a single or double letter code that corresponds to each. It might include, for case, contributions to a 401 ( kelvin ) plan. Codes are detailed in the IRS ‘ W-2 instructions .

Box 13

This box has three bomber boxes designed to report pay that is not discipline to federal income tax withhold, if you participated in an employer-sponsored retirement design, or if you received sick yield via a third-party, such as an indemnity policy .

Box 14

Box 14 allows an employer to report any early extra tax information that may not fit into the other sections of a W-2 mannequin. A few examples are state of matter disability policy taxes withheld and union dues .

Boxes 15-20

The last six boxes on a W-2 all relate to submit and local anesthetic taxes, including how much of your pay is discipline to these taxes and how much was withheld .

associate Tax Documents

Form W-4 is completed by every employee for withholding purposes. The employer uses the information to determine how a lot tax to withhold from the employee ‘s paychecks. Most employees must fill out this form when they start working for a ship’s company .

If the employee is paid $ 600 or more for the company during the year, the company issues a 1099 form showing the earnings and deductions made. This normally arrives by the conclusion of January of the following year .

Form W-2G is a tax human body that a gaming facility such as a casino may send you if you received winnings from gambling in the anterior year .

Students receive a 1098-E statement for any class in which they paid interest on a federal student loan. Students besides receive a 1098-T affirmation reporting college tuition expenses that might entitle students to tax deductions or credits .

How Can I Get My W-2?

Your employer is required to provide you with copies of your W-2 each year if you are eligible to receive one. The deadline for companies to provide this form is typically by the goal of January or early February following the tax year that fair ended. W-2s may be sent by mail as a hard copy or made available on-line in electronic form, either through the employer directly or via their payroll provider .

How Much Money Do You Need to Make to Get a W-2?

In general, you will receive a W-2 from an employer if you earned at least $ 600 in a given year. You will besides receive a W-2 if you had taxes withheld earning any measure from your employer. notice that if you were a contracted individual and not an employee, you will probable receive a 1099 alternatively of a W-2 .

What Do I Do If I Lost My W-2?

If your W-2 is available on-line, you may access it as many times as you need. If you lose your password or credentials for accessing the on-line web site, you can frequently request automated password recovery. If you even need help oneself accessing your information on-line, or if you need to request a newly wallpaper replicate, you should contact your payroll or HR supervisor.

What Is the Difference Between a W-2 and a W-4?

A W-4 is filled out by employees to provide their employer with their tax ID phone number ( normally SSN ), marital condition, number of allowances and dependents, and how much tax to withhold with each paycheck. The W-4 is filled out when an employee is first hired or if any changes must be made to filing status or withholding tax. The W-2 is filled out by employers at the end of the tax year and sent to employees to input on their tax returns .

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