W-2 forms are crucial part on the tax preparation of people if they will report on the wages which are paid and the taxes which are withheld by the employer. A good advantage about tax-related forms is that there’s really no need for you to fill out a W-2 form. You just simply receive it and then 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. 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. In case you are earning money as an independent contractor, you will acquire a 1099 form than getting a W-2 form from y9our employer as long as you are earning more than the necessary requirement.
After you have received your W-2 form which the employer needs you to send, you will mostly get multiple copies. This is done in order for you to keep one of the records and to be able to include a copy with your federal tax return as well as your city, state 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 is very important that you also do reviews on your W-2 form so you could ensure that the information 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.
You may be aware that people who are self-employed usually needs to make an estimated tax payment for the whole year and you may assume that you don’t need to pay your taxes. This actually is not the case because employees are required to make regular tax payments throughout the year. This actually is what’s going on if the employer will withhold the taxes coming 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.