Understand a W2 Form Like An Expert

If you are reading a W-2 form as a beginner, chances are that you may get confused quickly. We understand that understanding a tax form cannot be a likable task. However, working in the USA, you have to receive a W2 form each year. Copies of W-2 forms are useful for declaring your federal and local income taxes. You need to have a grip on the basics.

 

We are providing this guide to help you understand the W-2 form like an expert and avoid mistakes and misunderstandings associated with income declaration.

 

Introduction

 

The left panel of the W-2 form displays personal information. The individual details are the person’s name and address, as well as the employer’s name and address. Financial details are available on the right.

 

You can look at the sample to learn about the regular layout. After gaining familiarity with the W-2 form, understanding it becomes quite easy. Paystubs and W-2 forms should be kept safe as a reference for later.

 

Understanding W2 in Detail

 

All boxes are listed here, and their information acts as a handy guide for you. There are two kinds of boxes on the W2 form: i) Boxes with letters on the left. ii) Boxes with numbers on the right.

 

Boxes with letters

 

Box A – It contains the social security number

Box B – It contains the Employer Identification Number (EIN)

Box C – Name and address of employers, including zip code.

Box D—This is a control number that recognizes your one-of-a-kind Form W-2 archive in your boss’s records. The organization’s payroll handling program assigns this number.

Box E – Your full name. If it changes, for example, in the event that you get married, request that your organization update this.

Box F – Address and Zip code.

 

Boxes with numbers

 

Box 1 – Your aggregate taxable pay for government income tax purposes. This will incorporate any tips and rewards you make.

Box 2 – The sum your boss has withheld for federal income tax. Fundamentally, it’s the amount of federal pay tax you’ve officially paid.

Box 3 – The aggregate sum of your pay on which you’ll need to pay Social Security tax.

Box 4 – The sum your boss has withheld for Social Security tax.

Box 5 – The aggregate sum of your pay on which you’ll need to pay Medicare tax.

Box 6 – The sum your manager has withheld for Medicare tax.

Box 7 – Tip salary you’ve reported to your boss.

Box 8 – Tips allocated to you by your boss. You’ll have to add this to your taxable wages on your tax return.

Box 9 – Box 9 was once used to report any progress of the Earned Income Credit; however, the progress of the earned income credit finished in 2010, so this ought to be empty.

Box 10 – Box 10 reports any sums you may have been repaid for subordinate care expenses through an adaptable spending account or the dollar estimation of dependent care services provided to you by your boss.

Box 11—This box reports any sums appropriated to you from your boss’s non-qualified deferred compensation plan or non-government Section 457 pension plan.

Box 12 –  This box applies to conceded pay and other pay. A few sorts of pay and benefits can be accounted for in Box 12.

• Box 12 a – Uncollected Social Security or RRTA charge on tips. Include this amount as part of your total tax.
• Box 12 b – Uncollected Medicare tax on tips. Include this amount as part of your total tax
• Box 12 c – Taxable benefit of group term-life insurance over $50,000. This amount is already included as part of your taxable wages in Boxes 1, 3, and 5
• Box 12 d – Non-taxable elective salary deferrals to a 401(k) or SIMPLE 401(k) retirement plan.

 

This is some of the basic information. There are many advanced fields in it.

 

If you want to generate W2 Form 2015, W2 Form 2016, and W2 Form 2017, then StubCreator is the best place.

 

Related Article: Deadline for W-2 Form

 

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