What You Need to Know About a W2 Income Statement Form
It is the employer that you have that will be responsible for deducting the taxes that you have in your income. It is this one that needs to be done especially for employees employed by a company. When you are a freelance or a contracted worker then you are not involved in this one. Its the form known as the W2 where your employer will collect all of the information that you have. When it comes to this form that it is the IRS and you that will both get a copy. By making sure that its form is accomplished then it is the filing of your federal and state income taxes that can be achieved. Depending on the tax situation that you have that you can also get a check which is known as a tax return. It is this form that should be sent by mail or should be given to your employer in a sealed document.
There are many different boxes that you are able to see once you will look at a W2 form. These boxes also will have different information and numbers on it. Easier than what they look like is what these boxes are. The personal information that you have and your employer is what needs to be filled out in the boxes A-F. Your social security number, your employer’s tax ID, the address of your job, your full name, and your current address are the needed information that you need to fill out in these boxes.
The box 1 will need total tax income that you have within one fiscal year. Knowing the exact income that you have should be known to you since not all income can be taxable.
W$hen looking at boxes 2-6 that i6 is the one that will be showing the income that was withed for taxes. This will be based on the federal income tax, state income tax, Medicare, social security tax, and more. It is these types of information that one will need when they will be filing their taxes.
The different incomes that you have in a special form is what should be placed in boxes 7-10. These are the types of incomes that will be including tips, reimbursement, and income credits. It is the deferred compensations that you have that will be placed in boxes 11-12. Getting to know this information more can be done by you once you will be talking to your employer.
Knowing if you are a statutory employee can be determined in box 13. Showing if you have participated in your employer’s retirement program, or if you received any third-party sick pay will also show in the box 13. The additional tax information that your employer finds important will be shown in box 14. It is the state income tax information that will be shown in boxes 15-20.