Important Things you Should Know about Form W-2

A number of people cannot stand it when tax season comes around. The seasons come with so much stress for some. 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.

Unfortunately, many people wait until it is too late to start figuring out issues about the taxes they need to sort out. If you are employed, you should have noticed in early February or late January you receive a form with many boxes in the mail. The form is referred to as 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.

The W-2 form used to be called 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.

You require the form to Do Your Taxes
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 will tell you how much you have earned in the year that has passed. Additionally, it will tell you the amount you have paid in taxes during the past year. There is a lot of information you need to fill in the W-2 as you do your taxes.

It has to do With More than Payment
Of course, your W-2 shows the amount you made in wages and tips. Nevertheless, the form also details other information. Health insurance and retirement contributions are examples of things you will find in the form.

You Cannot Hide the Forms
Employers are required by the law to send copies of the W-2 form to the SSA, and your local tax authorities. That means that stuffing the forms in drawer and hoping the IRS will not find out will not work. The only thing you are likely to experience is many letters from the IRS, which will only stress you the more. You may also get some letters from your state if the state has income taxes.

Your W-2 should be sent by 31st of January
All employers are required by the government to send the forms to relevant parties by 31st of January. 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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