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Most Common Functions Used in the Calculation of Total Income
With the new year comes new forms to fill out for the w2 form 2017 pdf, which you can download in its entirety or pieces from the Internal Revenue Service website. However, understanding the form and filling it out can be tricky if you’re unsure what each section means and how it affects your final total income at the end of the year.
To help you navigate this common form and its information, here are the three most common functions used in the calculation of total income on the printable w2 form 2017 pdf,
- Gross Income
- Net Income
- Taxable Income
In most cases, your employer should be able to help you with questions related to your printable w2 form 2017 pdf; if they don’t, you may need a consultation with a tax professional.
Calculating Gross Income
Gross income is simply income received before any deductions are made. This can include salary, wages, tips, bonuses, and commissions. To determine gross income for a person’s tax return, you add up all taxable income and subtract total personal deductions. This figure becomes your adjusted gross income.
Calculating Net Income
Gross income is your total earnings, minus any deductions such as health insurance or 401k contributions. Net income is gross income minus all taxes and social security deductions.
Most employees will get a printable w2 form 2017 pdf from their employer at the end of each year that they can use to calculate their net taxable income. Still, some jobs may only provide a printable w2 form 2017 or even just an online W-2 calculator.
Calculating Taxable Income
Taxable income is typically listed on a business’s printable W2 form 2017 or wage and tax statement. This valuable tool lists an employer’s gross pay by salary before taxes are taken out.
Printable W2 forms 2017 allow companies to:
(1) receive immediate feedback on tax payments
(2) track payroll deductions; and
(3) calculate year-end tax obligations faster than ever before.
