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Tax Returns: What Is A W2 Form

If you are an employee, that is earning salary from someone, you should receive a form W-2 from the employer. The form is a “Wage and tax statement” for the year. In order to file tax returns for 2007 you must either include a W-2 and in case the W-2 is not received by you on time you will need to use form 4852 as a substitute.

  • As an employee you must receive a form W2 from the employer no later than Jan 31 st. Keep a track of where all you worked during a year and gather W-2 for each job.

  • The earnings will be entered in “box 1” of the W-2. To compute total wages for any year you need to add the box 1 amounts of each W-2 form.

  • Then when filling the tax return insert the total amount earned on form 1040, 1040A, or Form 1040EZ. The format of a W-2 depends on how the employer processes the payroll. However the content of every W-2 remains the same.

  • In order to prepare taxes efficiently it is advantageous to known and understand the w-2.

    * Boxes A to F of the W-2 are unique identifications:

    * Box A represents the control number and the code, specific to you is assigned by the payroll system.

  • Box B is the employer’s tax identification number.

  • Box C records the employer’s name, address, and other relevant information.

  • Box D: This is your social security number. Always check that this is correct.

  • Box E records your personal details, your name in full.

  • Box F gives your permanent address and recent address.

  • Boxes 1-10 of the W-2 detail systematically your wages as well as tips, bonuses, and so on; federal income tax withheld by employer; the social security wages; social security taxes withheld; Medicare wages; Medicare taxes; social security tips; allocated tips; advance EIC payment; and dependant care benefits.

  • Boxes 11-20 detail: non qualified plans; compensation benefits; employee status: statutory employee, retirement plan, and third party sick pay; detailed tax information; state and state employer’s ID; state wages; state income tax withheld; local wages; local income tax withheld; locality name detailing state taxes.

  • Box 12 of the w-2 details all the different compensations and benefits like uncollected social security, uncollected Medicare, salary deferrals, retirement plans, and so on.

  • The Social Security Administration will receive copy A of W-2 directly from the employers. The SSA will in turn send relevant details to the IRS. Copy B of the W-2 is to be attached by you to your Federal tax return. Copy C of the W-2 is to be filed and kept by you along with other tax documents for a minimum of four years. Copy 1 of the W-2 will be mailed by the employer to the local state tax department and copy 2of the W-2 must be filed by you along with your state tax returns. Copy D of the W-2 will be retained by the employer and maintained as record for at least four years.

  • Detailed instructions for form W-2 are provided by the IRS at http://www.irs.gov/instructions/iw2w3/index.html use of the instructions as well as other online tips such as common errors.

    Create a check list that will enable you to check that the W-2 received by you has no errors.

    About Author:

    Barry Allen is a freelance writer for Online Tax Firm, the premier website to find tax, return tax, tax software, free tax filing, sales tax, services tax,income tax, property tax and many more.

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