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Getting Down To Basics with Resources

All about W-2 Tax Forms

When someone is employed and their employer pays them through noncash means, for every amount that exceeds six hundred dollars for that year, an employee is obligated to fill a W-2 form. 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. Supposing an employee had his or her income held more than necessary, there are chances of them getting a refund of the extra amount 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. Every employee has three forms. The first form is sent to the Internal Revenue Service, the second one is sent to the employee while the third one is kept by the employer for record keeping.

It is the duty of the employer to complete the W-2 forms and send them to their employees by mail before January thirty-one. After the employee is done filling the W-2 form, she or he should submit it on or before February 29 as per the set deadline by the Internal Revenue Service. There are usually six copies for every W-2 form. Shown below is the breakdown of the six copies.

Copy A is the first one and this copy is usually submitted by the employer to the Social Security Administration. The second copy is also known as Copy B is sent to the employee so that they can file federal income tax returns. Copy C is also sent to the employee which she or he retains for record purposes. The fourth copy, Copy D is kept by the employer also for purposes of record keeping. There’s a fifth copy is known as Copy 1 which the employee files for purposes of state or local income tax returns if 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.

In conclusion, filing for income tax returns should be taken seriously by both employers and employees. 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. All employees entitled to wages and salaries must fill the W-2 forms and submit as required to avoid getting penalized.

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