W-2 forms are considered to be crucial parts for tax preparation of people when they report on the wages that are being paid and the taxes that are withheld by the employer. One considered advantage with tax-related forms is that there’s entirely no need to fill out a W-2 form. You simply will just need to receive it and to use it.
The first thing that you should know is that you are not the only individual that your employer prepares for 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. It’s very crucial that you know that you would expect a W2 form when you are an employee and you have obtained a certain amount or perhaps had any amount withheld. If you earn money by being an independent contractor, you will get the form of 1099 instead than receiving a W-2 from the employer as long as you are able to make more than the certain amount requirement.
After you have received your W-2 form which the employer needs you to send, you will mostly get multiple copies. This in fact is done so you will be able to keep one of the records and you also could include a copy with the federal tax return and your local, state and city tax returns. If you are not able to get your W-2 on time, the IRS comes with guidelines on what you should do.
You should also make sure to do reviews on your W-2 form for you to get guarantees that any information provided is correct. If in case your name is misspelled or your Social Security number is wrong, the IRS will have problems when it comes to matching the records that you have provided on what you have paid and earned and what you have reported to them. This will be able to delay the process of return as well as trigger an audit.
You may be aware on some cases that people who are self-employed needs to make an estimated tax payment for the entire year and assume that there’s need to pay the taxes. This actually is not the case because employees need to make their regular tax payments for the entire year. This actually is what’s going on if the employer will withhold the taxes coming from the paychecks. They are withheld and are sent to the IRS.
If you prepare your taxes, your W-2 summarizes on how much had been withheld to income taxes, Social Security as well as on Medicare. 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.