Essential Things you Need to Know about the W-2 Form
Many people do not like the tax season for reasons better known to them. That is because many people experience a lot of stress during this time. The major reason being lack of preparation. It is important to know every little detail about filing your taxes.
Unfortunately, not too many people procrastinate on matters to do with taxes. 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.
This form was initially referred to as the “wage and tax statement.” In the form you will find information on how much you have been compensated with for your services. This is a crucial form for many because the information on the form whether you will write a check or get a refund. Below are some things you need to know about the W-2 form.
The form is Necessary for Filing Returns
You should know about all forms required for your taxes. One of these forms is the W-2. The form is quite important when doing your taxes. The form will tell you how much you have earned in the year that has passed. On top of this, you get to see how much tax you paid in that year. There is a lot of information you need to fill in the W-2 as you do your taxes.
It has to do With More than Payment
Sure, your W-2 form will detail the money you made in tips and wages. However, it also deals with a variety of other stuff. Some other things you might find in the form include retirement fund and health insurance contributions.
You Cannot Hide the Forms
Your employer has a legal obligation to send the form to the relevant parties. This means that if decide that not to fill in the form and exclude the information from your tax returns you will get away with nothing. You will only be adding to your headache by getting several letters from the tax authorities. If the state has income taxes, you are also likely to get some letters from them too.
Your W-2 should be sent by 31st of January
All employers are required by the government to send the forms to relevant parties by 31st of January. This means that if you are an employee the form should reach you buy the first week of February. Employers only need to create the form using a W-2 form generator online, after which they can mail the forms.