Tax Returns: What Is A W2 Form Article

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Tax Returns: What Is A W2 Form

If you are an employee, that is earning salary from someone, you should receive a form W-2 from the employer. The form is a “Wage and tax statement” for the year.

Author: Barry Allen

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In order to file tax returns for 2007 you must either include a W-2 and in case the W-2 is not received by you on time you will need to use form 4852 as a substitute.

• As an employee you must receive a form W2 from the employer no later than Jan 31 st. Keep a track of where all you worked during a year and gather W-2 for each job.

• The earnings will be entered in “box 1” of the W-2. To compute total wages for any year you need to add the box 1 amounts of each W-2 form.

• Then when filling the tax return insert the total amount earned on form 1040, 1040A, or Form 1040EZ.

The format of a W-2 depends on how the employer processes the payroll. However the content of every W-2 remains the same.

In order to prepare taxes efficiently it is advantageous to known and understand the w-2.

* Boxes A to F of the W-2 are unique identifications:

* Box A represents the control number and the code, specific to you is assigned by the payroll system.

• Box B is the employer’s tax identification number.

• Box C records the employer’s name, address, and other relevant information.

• Box D: This is your social security number. Always check that this is correct.

• Box E records your personal details, your name in full.

• Box F gives your permanent address and recent address.

• Boxes 1-10 of the W-2 detail systematically your wages as well as tips, bonuses, and so on; federal income tax withheld by employer; the social security wages; social security taxes withheld; Medicare wages; Medicare taxes; social security tips; allocated tips; advance EIC payment; and dependant care benefits.

• Boxes 11-20 detail: non qualified plans; compensation benefits; employee status: statutory employee, retirement plan, and third party sick pay; detailed tax information; state and state employer’s ID; state wages; state income tax withheld; local wages; local income tax withheld; locality name detailing state taxes.

• Box 12 of the w-2 details all the different compensations and benefits like uncollected social security, uncollected Medicare, salary deferrals, retirement plans, and so on.

• The Social Security Administration will receive copy A of W-2 directly from the employers. The SSA will in turn send relevant details to the IRS. Copy B of the W-2 is to be attached by you to your Federal tax return. Copy C of the W-2 is to be filed and kept by you along with other tax documents for a minimum of four years. Copy 1 of the W-2 will be mailed by the employer to the local state tax department and copy 2of the W-2 must be filed by you along with your state tax returns. Copy D of the W-2 will be retained by the employer and maintained as record for at least four years.

Detailed instructions for form W-2 are provided by the IRS at http://www.irs.gov/instructions/iw2w3/index.html use of the instructions as well as other online tips such as common errors.

Create a check list that will enable you to check that the W-2 received by you has no errors.

About Author

Barry Allen is a freelance writer for http://www.1888Tax.com , the premier website to find tax, return tax, tax software, free tax filing, sales tax, services tax, income tax, property tax and many more. He also freelances for the premier Credit Report site http://www.1888creditreport.com

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