Estimate your tax refund and where you stand Get started. See if you qualify for a third stimulus check and how much you can expect Get started. Easily calculate your tax rate to make smart financial decisions Get started.
Estimate your self-employment tax and eliminate any surprises Get started. Know what dependents credits and deductions you can claim Get started.
Know what tax documents you'll need upfront Get started. Learn what education credits and deductions you qualify for and claim them on your tax return Get started. The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Skip To Main Content. What is a W-2 Form? Importance of your tax withholding When your employer withholds amounts from your paycheck for federal income taxes, those amounts are remitted to the IRS throughout the year.
Verifying your name and Social Security number The identifying information section of the W-2 is essentially a tracking feature. Attaching your W-2 When you finish your tax returns and get ready to file them, remember that a copy of your W-2 must always be attached. All you need to know is yourself Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest.
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And so that is actually separated out right over there. Box number eight, allocated tips, this is the IRS's way of keeping track that at least a reasonable amount of tip income is reported, this is tips allocated by an employer and I won't go into it, it gets quite complicated, but it's a percentage of, if they are a restaurant or a bar, a place where people are likely to get tips, they allocate a percentage based on the revenue, a certain percentage of that to employees and you can almost view them as what was likely going to be the tips.
And this actually can get into a fairly complicated discussion, the big takeaway of it is, is if you are getting tips, it's good to keep track of it yourself and it's good to report it to your employer.
Now as we go into these other boxes, box number nine, I won't go once again into the details of it, but as of the time of this video was made, as you can tell, it was made in , this box was no longer used and so that's why it's grayed out.
And then as we go down once again, these are many many boxes that don't always get filled out, dependent care benefits, these might be, they are what they say, if you got some type of benefit that helped with childcare or some type of schooling, that would be listed over here, nonqualified plans, these are things like deferred compensation plans, they often apply to kind of higher level executives but they're just there just to list them just so that they can be broken out.
Now 13, these are just checkboxes to see if certain things happened, if you were a statutory employee, once again I'm not gonna go into detail on that, that can get a little bit involved, retirement plan, that clearly happened here, we just talked about that, third-party sick pay, that's if maybe your employer had a insurance plan for sick pay and so you received from the insurer as opposed to from your employer.
Box 14, other, it is what it says, it's space for your employer to kind of list other types of odds and ends that might have been relevant to you. And then after that, we start breaking into the state and local wages and taxes, so you see over here in box 15, you can list the state or states, up to two right over that you might have worked in, in that year, even for this one employer, maybe you moved for that same employer in that same year and you can list the name of the state but also the state ID number which is how the IRS keeps track of the states and it's really just keeping the information to be a little bit redundant so in case there's a mistake, people can still keep track of things.
Then if you're in a state with state income taxes, well you would be doing this if you're in a state with state income, if you're in a state with state income taxes, you would list your wages, tips, and compensation that are susceptible to state income taxes here, and then you would say, well what was actually withheld?
Then, 18 and 19 and 20, if you are in a city that also collects income tax, place like New York City and there's others, that's what you list over here, the wages that are susceptible to it, how much you paid, and the actual locality name.
Filling out EZ. Up Next. The employer must send the employee the W-2 form on or before Jan. The federal income tax filing due date for individuals has been extended from April 15, , to May 17, Payment of taxes owed can be delayed to the same date without penalty. Your state tax deadline may not be delayed. If you were affected by the February snowstorm disaster in Texas, your deadline for filing has been moved to June 15, If you don't live in Texas but were affected by the storm, you may still be eligible for the extension.
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 example, if you receive a W-2 form in January it reflects your income earned for 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 also submit a copy 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 track of payroll, tax withholding, employer-provided benefits, and pre-tax contributions to things like a k retirement plan.
The W-4 form tells the employer the amount of tax to withhold from an employee's paycheck based on the person's marital status, number 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 Form individual tax return, either by hand or electronically.
Online tax preparation software now allows you to directly import the information on your W-2 from your payroll provider in many cases. Every W-2 has the same fields, no matter the employer. W-2 forms are divided into state and federal sections since employees must file taxes on both levels. The remaining fields are mostly 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 withheld in taxes from the employee's paychecks, separated into the withholding for federal income tax, Social Security tax, and more.
If the employee also works for tips, a field 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 separately. When the employee files taxes, the amount of tax withheld according to the W-2 form is deducted from their gross tax obligation. If more tax was withheld than the employee owes, a refund will be issued.
However, taxpayers are required to report all salary, wage, and tip income even if that income is not reported on a W W-2 forms include both numbered and lettered boxes that an employer must fill out and reflects how much you earned and taxes withheld. The lettered 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 number. Box 1 shows your taxable income, including wages, salary, tips, and bonuses, while Box 2 shows how much federal income tax your employer withheld from your pay.
Box 3 details how much of your earnings were subject to Social Security tax and Box 4 the amount of Social Security tax that was withheld. Box 5 spells out how much of your pay is subject to Medicare tax and Box 6 how much was withheld. The employee portion of the Medicare tax is 1.
If part of your pay 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. This box was used to reflect a now-defunct tax perk, so it is left empty. Box 10 reports how much you received from your employer in dependent care benefits if applicable. This box details how much deferred compensation you received from the employer in a non-qualified plan. Box 12 details other types of compensation or reductions from your taxable income and a single or double letter code that corresponds to each.
It might include, for example, contributions to a k plan. Codes are detailed in the IRS' W-2 instructions. This box has three sub boxes designed to report pay that is not subject to federal income tax withholding, if you participated in an employer-sponsored retirement plan , or if you received sick pay via a third-party, such as an insurance policy.
Box 14 allows an employer to report any other additional tax information that may not fit into the other sections of a W-2 form.
A few examples are state disability insurance taxes withheld and union dues. The last six boxes on a W-2 all relate to state and local taxes, including how much of your pay is subject to these taxes and how much was withheld.
Form W-4 is completed by every employee for withholding purposes. The employer uses the information to determine how much tax to withhold from the employee's paychecks.
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