What is a W-2 form? A starting point for submitting your taxes.

If you have ever been an employer or employee in America, chances are that you have completed a W-2 form or at least seen it. That is because this form is used by the Internal Revenue Service (IRS) to estimate tax posting.

If you have earned taxable wages or compensation more than $ 600, you must receive a W-2. Employers must owe taxes, either by post or electronically, on January 31 of the year.

The IRS refers To form W-2 as the wage and tax statement. This document summarizes your income for the tax year and follows the income, social security and medicine taxes that have been remembered. Because a W-2 records the amount of taxes that you have already paid, this is an important document to complete your federal tax return

In addition to reporting how much your employer has withheld in payroll taxes, also known as FICA taxes, your W-2 offers tax reporting on other reimbursements, such as the employer, pension insurance, pension insurance and contributions for health savings, dependent care benefits, and more.

Your employer must send you and the IRS a W-2 form for tax purposes. Employers who have 10 or more form W-2 have to retour information with the IRS E-File. You may hear some confusing jargon over copy A, B and C of the W-2 form, but this only refers to duplicates of the same form.

Copy A is for your employer to submit to the IRS, copy B is that you have to submit your tax information to your tax return for your data. A copy 2 of your W-2 form can also be recorded and reflects every state, city or local income tax withheld.

Employers are also responsible for submitting a Form W-3 For each of their W-2 employees at the Social Security Administration (SSA) to determine the tax on social security and to earn benefits.

Although your employer submits a W-2 that is linked to your social security number with the IRS, you are also responsible for including a copy with your individual tax return.

Read more: How you can determine your tax interest to prevent surprises

Staring a W-2 shape and you are not really sure what you’re looking at? With 20 different information about information, there is enough to overwhelm the average taxpayer. This is what you will find in every box of the Current form W-2 wage and tax statement.

At the top of a W-2 form is the name, address and social security number of the employees. This is stated in addition to the employer address and the identification number of the employer or the Staats -ID number of the employer if applicable.

There is also a box for a control number that refers to a number that your employer may have assigned in their system.

Boxes 1 and 2

Box 1 shows your taxable income, including total wages and other compensation. Box 2 shows your federal income tax for the year.

Boxes 3 and 4

These boxes are all about social security, including how much of your income is taxable for social security purposes and the amount of the tax on social security.

Boxes 5 and 6

These boxes on the W-2 show how many of your wages are subject to medicare tax and the amount of medicine tax that you had remembered.

Boxes 7 and 8

These two boxes are for the extras that you may have earned, such as tips that are subject to social security taxes in box 7 and tips assigned in box 8. Irs defines Tips assigned as “amounts to your employer who is assigned to you in addition to the tips you have reported.”

Boxes 9 and 10

Don’t worry if you don’t see anything in box 9, don’t worry. It was a field for a tax credit that no longer exists. Box 10 reports how much you have received from your employer in dependent care benefits.

Boxes 11 and 12

Box 11 has some confusing language about not -qualified plansBut this only refers to deferred compensation that is usually offered to managers. Box 12 shows other types of compensation, such as 401 (K) or health savings account contributions.

Boxes 13 and 14

This rule is a catchall for information that does not fit anywhere else. Box 13 has three smaller boxes for the reporting of a pension plan or sick leave sponsored by the employer. Box 14 is for all leftovers, such as state insurance, trade union rights and premiums for health insurance policies.

At the bottom of your W-2 form there can be additional boxes that reflect the tax information of the state, such as any income tax of the state or deduction of local income tax. If your state or local government does not offer or need automatic deduction, these boxes can remain empty.

Read more: Free tax return: how you can submit your 2024 declaration for free

If there is an error on your W-2, such as an incorrect amount or a wrongly stadded name, point to the error to your employer and ask for a corrected form. It can take time and a hassle, but if it entails a considerable amount or big mistake, the IRS can give a fine to your employer.

It is also worth waiting for the corrected form for your own peace of mind. If the taxable income on your federal or state declaration does not match what is stated on your W-2 form, this can activate an IRS audit. The IRS has instructions for filling in a additional form In the event that you do not receive your corrected W-2 before the deadline for tax return.

If your W-2 deficit was more than your tax obligation for the year, the IRS will give you a refund. But if you do not want to wait for the tax season to get your own money back next time, work together with your employer to correct and adjust your dedication.

Your employer must email your W-2 on January 31, but that does not mean that you will receive it by that time. Wait until mid-February before you follow and check whether you have online access to a copy online or via your HR department.

If you do not have your W-2 form at the end of February and your employer has not responded, you can contact the IRS on 800-829-1040. They will follow your employer and you one replacement shape To fill it in so that you can complete your taxes.

2. What is the difference between a W-2 tax form and a form W-4?

W-2 and W-4 forms are easy to confuse, but a W-2 is a form that fills in your employer who reports how much you have made and the amount that has been withheld for federal and national tax purposes. A form W-4 is one that you fill in that your employer tells how much tax you must withhold.

A W-4, also mentioned by the IRS as a The deduction of the employeetells the company or the small company that you work for how much you want to have withheld for taxes, depending on your marital status, how many children you have and other information.

All employees with taxable wages or compensation of more than $ 600 must receive a W-2. Some employees can even receive several W-2s if they have worked more than one job during the calendar year.

The exception to this rule is independent taxpayers, such as independent contractors, gig employees or freelancers. Unless they are defined as Legal employeesThese employees receive a Form 1099 Instead of a W-2 form. Because they have not withheld a federal income tax, these taxpayers can use the 1099 to calculate their taxable income and to estimate any remaining tax obligations.

Read more: How do independent taxes work? A step -by -step manual

Although it is the responsibility of your employer to submit a W-2 (and a W-3) to the IRS and Social Security Administration, you must also submit a federal and state tax return. The exception is if you have made less than $ 600, in which case the IRS does not need W-2, but still encourage taxpayers to report the income.

Independent contractors and freelancers serve form 1099 instead of form W-2, which describes their taxable income and other reimbursement for the tax year.