All about W-2 Tax Forms
Each and every person who is employed and their employer pays them on a non-cash basis, there is need to fill out the W-2 form for any amount equal to six hundred dollars and above. This form is the one that shows the amount paid by an employer, the taxes withheld as well as the employee’s social security number. When an employee is preparing his or her tax return, on the W-2 form, the amount withheld is usually deducted from the tax that’s due. In case the amount withheld from an employee’s income is more than necessary, it is possible for the employee to get a refund from the Internal Revenue Service.
It is wise for an employee to be aware that the amount on the W-2 form sent to the Internal Revenue Service should match with the one the employee files as differences may raise suspicion from the Internal Revenue Service. There are three forms for every employee. One form is kept by the employer for purposes of record keeping, the other one is sent to the employee while the third one is sent by an employer to the Internal Revenue Service.
The W-2 form must be completed by an employer and then sent to the employees by mail on or before January 31st. The Internal Revenue Service has also set a deadline for submission of the W-2 forms by employees on February 29. The form W-2 consists of six copies. Written below is how the copies are broken down.
Copy A is the first one and this copy is usually submitted by the employer to the Social Security Administration. Copy B is the second one and this copy is sent to the employee for purposes of filing federal income tax returns. The third copy, Copy C is also sent to the employee for purposes of own record keeping. Copy D, also the fourth copy is known as the employer’s copy which they keep for record purposes. The second last copy known as Copy 1 is sent to an employee so that the employee can file for state or local income tax if at all there is any. Copy 2 is the last one and this is sent to an employer so that they can also file for state or local income tax returns, if at all there is any.
To conclude, it is recommended that seriousness should prevail from both employers and employees when it comes to filing income tax returns. This is due to the fact that if either fails to play their role, they can be met with serious consequences coming from the Internal Revenue Service. It is mandatory for all employees who earn wages and salaries to fill out the W-2 forms as expected because failure to can lead to one being penalized.