Information you Should Have about the W-2 form Needed for Taxes
A number of people cannot stand it when tax season comes around. This is because this is usually a time of pressure for many. Lack of preparedness is usually the main reason for this. It is important to know every little detail about filing your taxes.
It is unfortunate that most people procrastinate to find out matters related to taxes they need to pay or returns they should file. As an employee, you must have found a form with several tiny boxes in the mail around January or early February. This form is not a bill, but a W-2 form. Any employer who paid you up to $600 during the year is required to send you such a form.
This form was initially referred to as the “wage and tax statement.” Information about your compensation by the employer is detailed in the form. The form is vital because the data in it will determine whether you are getting a refund or writing a check. Discussed below are some important information to note about the W-2 form.
You require the form to Do Your Taxes
When doing your taxes, you need to know about a variety of forms. The W-2 form is an example of one of the forms you should be aware of. This form is essential when doing taxes. In the form, you will find information in how much your employer paid you in 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. 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.
You Cannot Hide the Forms
Your employer has the mandate of sending copies of form W-2 to the parties and authorities concerned. That means that stuffing the forms in drawer and hoping the IRS will not find out will not work. You will only be adding to your headache by getting several letters from the tax authorities. If the state has income taxes, you are also likely to get some letters from them too.
Your W-2 should be sent by 31st of January
The government requires that employers send the W-2 forms to relevant parties latest by January 31st. By week one of February employees need to have their W-2 forms in the mail. Employers can easily create the forms online using W-2 form generators.