W-2 forms are actually essential part when it comes to the tax preparation of people when they report the wages that are paid and taxes that are withheld by an employer in a year. A good advantage about tax-related forms is that there’s really no need for you to fill out a W-2 form. Yo simply just need to get it and use it.
An essential thing that you should know first is that you will not be the only one who the employer will prepare a W-2. The Social Security Administration, IRS and you as well will acquire a copy that makes it unwise for you to think of under-reporting your wage or perhaps trying to over-report your tax. You should also know that you would expect a W-2 form when you are an employee and you also have earned a certain amount or had any amount withheld. When you are earning as an independent contractor, you will get the 1099 form than the W-2 from the employer as long as you are making more than the requirement. Make yourself one of the luckiest person who learn about What Is A W-2 And Why Do I Need One.
When you received you W-2 form that your employer needs you to have, you will get multiple copies of it. This actually is done so you could keep one of the records and you also could include a copy with the federal tax return and your state, city and local tax returns. If you have not acquired your W-2 on time, the IRS have certain guidelines about what you could do.
It’s essential to also do reviews on your W-2 form for you to get an assurance that the information provided is correct. If you ever have your name misspelled or perhaps your Social Security number is wrong, the IRS will have issues when it comes to matching the records with what you have earned and paid as well with what you report to them. This will then delay the process of return and this also will cause an audit. Be more curious about the information that we will give about What Is A W-2.
You probably have heard some people who are self-employed pays an estimated tax payment for the entire year and there are instances where you may assume that you don’t really need to pay your taxes. This actually is not the case because employees are required to make regular tax payments throughout the year. This would be what’s going on when the employer withholds the taxes from the paychecks. They actually are withheld and will be sent to the IRS.
When preparing your taxes, your W-2 will summarize how much had been withheld to Social Security, Medicare and on income taxes. When you calculate on your total tax due for the year, you actually will be able to deduct on how much you paid already for the IRS and owing a little more on taxes or due a refund when there are over-payments. Explore more wisdom about Form W-2 at https://en.wikipedia.org/wiki/Form_W-2.