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. The major reason being lack of preparation. It is critical for you to understand all the information regarding the filing of taxes.
Unfortunately, many people wait until it is too late to start figuring out issues about the taxes they need to sort out. 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. This form is not a bill, but a W-2 form. If you made at least $600 from an employer in a year, they are legally obliged to send this form to you.
Initially the form was referred to as the wage and tax statement. In the form you will find information on how much you have been compensated with for your services. The form is vital because the data in it will determine whether you are getting a refund or writing a check. Below are some things you need to know about the W-2 form.
The form is Necessary for Filing Returns
You should know about all forms required for your taxes. Form W-2 is one of the forms you need to know. The form is quite important when doing your 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. You need to fill in a lot of details in this form.
Form W-2 Deals With More than Just Payment
Of course, your W-2 shows the amount you made in wages and tips. However, it also deals with a variety of other stuff. Some other things you might find in the form include retirement fund and health insurance contributions.
The W-2 form is Not a Secret
Your employer has a legal obligation to send the form to the relevant parties. 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 are likely to get some letters from your state too if you have to pay 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. That means that all employees need to find their forms at least by the first week in February. Employers can make the forms using W-2 form generators online.
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