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Essential Things you Need to Know about the W-2 Form
Many people do not like the tax season for reasons better known to them. This is because this is usually a time of pressure for many. Lack of preparedness is usually the main reason for this. You need to know about even the smallest details when it comes to filing of taxes.
It is unfortunate that most people procrastinate to find out matters related to taxes they need to pay or returns they should file. If you have ever been an employee, you know that every year around January there is a form with several tiny boxes, which comes in the mail for you. The form is referred to as a W-2 form. IF you made a minimum of $600 from an employer during the year, they are legally required to send you this form.
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. This is a crucial form for many because the information on the form whether you will write a check or get a refund. Discussed below are some important information to note about the W-2 form.
The form is Necessary for Filing Returns
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 shows you the earnings you made during the past year. In addition to this, it shows the amount you paid in taxes during that year. There is a lot of information you need to fill in the W-2 as you do your taxes.
The form Deals with More than One Thing
Certainly the form will show the amount you made in wages. Nonetheless, there are other thing detailed in the form. Health insurance and retirement contributions are examples of things you will find in the form.
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. This means that if decide that not to fill in the form and exclude the information from your tax returns you will get away with nothing. 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.
Employers need to furnish the Forms by January 31st
The government requires that employers send the W-2 forms to relevant parties latest by January 31st. This means that if you are an employee the form should reach you buy the first week of February. Employers only need to create the form using a W-2 form generator online, after which they can mail the forms.