Most people seem to hate tax season for various reasons. The seasons come with so much stress for some. The major reason being lack of preparation. 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. If you have ever been an employee, you know that every year around January there is a form with several tiny boxes, which comes in the mail for you. This is a W-2 form and not a bill. IF you made a minimum of $600 from an employer during the year, they are legally required to send you this form.
Initially the form was 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. Below are some things you need to know about the W-2 form.
The form is Necessary for Filing Returns
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. The form is quite important when doing your taxes. The form shows you the earnings you made during 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.
Form W-2 Deals With More than Just 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, click to know more!
The W-2 form is Not a Secret
Your employer has a legal obligation to send the form to the relevant parties. That means, you cannot get away with any taxes you need to pay by simply hiding the forms. The only thing you are likely to experience is many letters from the IRS, which will only stress you the more. You are likely to get some letters from your state too if you have to pay income taxes. Check out this website at https://www.huffingtonpost.com/2012/11/09/african-teenagers-develop-pee-powered-generator_n_2101778.html for more facts about generator.
Employers need to furnish the Forms by January 31st
All employers are required by the government to send the forms to relevant parties by 31st of January. 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 at www.thepaystubs.com/w2-form-generator.