Form W-2 is the form that an employer must send to an employee (and the IRS) at the end of the year showing their income earned during the year. The W-2 form reports an employee’s annual wages and the amount of taxes withheld from their paycheck. It holds a great deal of other information as well. Some for the Employee/taxpayer Some for the IRS. And there is even some information that is on these forms that is being collected as a study for our government.
Your W-2 has all your information on it, Your SS number, Name and address. Make sure this information is correct. You should ask your employer to correct any wrong information on your Form W-2.
Form W-2, Wage and Tax Statement, comes in a variety of sizes, shapes, and formats. Regardless of the format, every Form W-2 contains the same information.
Knowing how to read a Form W-2 can help you understand and get a head-start when preparing your income taxes.
Box 2 “Federal income tax withheld”:
Box 3 “Social security wages”:
Box 4 “Social security tax withheld”:
Box 5 “Medicare wages and tips”:
Box 6 “Medicare tax withheld”:
Box 7 “Social Security Tips”:
Box 8 “Allocated Tips”:
Box 9 “Advance EIC Payments”: – no longer used and greyed out
Box 10 “Dependent care benefits”:
Box 11 “Nonqualified plans”:
Box 12 “Deferred Compensation and Other Compensation“:
There are three check boxes in Box 13. Boxes will be checked off if any of these situations apply to you as an employee.
Statutory employee means that you must report the wages from this W-2 (and any other W-2 forms marked “statutory employee”) on Form 1040 Schedule C.
Box 14 “Other Tax Information:
Box 16 “State wages, tips, etc”:
Box 17 “State income tax”:
Box 18 “Local Wages and Tips”:
Box 19 “Local Income tax Withheld”:
Box 20 “Locality Name”:
For a great discusion about the form W-2 Please check out our Tax Hangout from G+ where I went over this form in detail and where this information goes on your tax returns.
© 2013, Bruce McFarland. All rights reserved.