tax returns & the w-2

new job starter pack (full-time)

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Are you a salaried employee? That’s cool, hopefully it’s closer to 30 hrs per week than 60 hrs per week, amirite? … Anyway, the W-2 tax form is key to getting started on your tax returns. We’ll explain why, and how to use it.

tax returns & the w-2

new job starter pack (full-time)

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  • Overview
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tax returns & the w-2

new job starter pack (full-time)

Are you a salaried employee? That’s cool, hopefully it’s closer to 30 hrs per week than 60 hrs per week, amirite? … Anyway, the W-2 tax form is key to getting started on your tax returns. We’ll explain why, and how to use it.

Tax returns & the W-2 Are you a salaried employee? Then you’ll want to pay attention. The W-2 is key to getting started on your tax returns. We’ll explain why, and how to use it.

 

What is a W-2?

  • The W-2 is a wage and tax statement that reports annual earnings and how much has been withheld from your paycheck. Remember, you selected withholding on your W-4. Same letter, different number. You’ll need to input information from the W-2 into your form 1040, and will also need to send a copy of it to the IRS when you file.
  • The W-2 is prepared by your employer and sent to you by January 31st in the year you are filing taxes. Ex: if you are filing tax returns for the year 2020, you will receive your W-2 by January 31st, 2021. Refresher: filing will be due in April 2021.

 

How do you read it?

  • There’s a version of the W-2 for both your federal and your state tax returns.
  • Boxes A through E include a combination of personal information and employer information. Make sure to review your personal info to confirm it is all correct!
  • Boxes 1 through 12 include a host of financial information – from your wages to withholding across various categories. The information will vary significantly in these boxes depending on your employment status. Again, you’ll want to double check to confirm that at least the wages are correct, and it’s up to you how much attention you’d like to give to reviewing the rest of the details.
  • Note that boxes 1 + 2 are specific to federal income
  • Boxes 15 through 20 get down to the state and local level, which will help you fill out tax returns in those areas.

 

Starting your tax return with it It is pretty seamless to start your tax returns with your W-2. The IRS does a good job of pointing you to where you need to go to make the connection between the W-2 and the form 1040 you are filling out. You’ll also be sending in a copy of your W-2 to the IRS when filing. Similar to the W-2 is the 1099 – essentially the equivalent for contract employees. We’ll take a look at that one next.

 

Source(s): IRS

what's in this lesson?

Are you a salaried employee? That’s cool, hopefully it’s closer to 30 hrs per week than 60 hrs per week, amirite? … Anyway, the W-2 tax form is key to getting started on your tax returns. We’ll explain why, and how to use it.

Transcript

Tax returns & the W-2 Are you a salaried employee? Then you’ll want to pay attention. The W-2 is key to getting started on your tax returns. We’ll explain why, and how to use it.

 

What is a W-2?

  • The W-2 is a wage and tax statement that reports annual earnings and how much has been withheld from your paycheck. Remember, you selected withholding on your W-4. Same letter, different number. You’ll need to input information from the W-2 into your form 1040, and will also need to send a copy of it to the IRS when you file.
  • The W-2 is prepared by your employer and sent to you by January 31st in the year you are filing taxes. Ex: if you are filing tax returns for the year 2020, you will receive your W-2 by January 31st, 2021. Refresher: filing will be due in April 2021.

 

How do you read it?

  • There’s a version of the W-2 for both your federal and your state tax returns.
  • Boxes A through E include a combination of personal information and employer information. Make sure to review your personal info to confirm it is all correct!
  • Boxes 1 through 12 include a host of financial information – from your wages to withholding across various categories. The information will vary significantly in these boxes depending on your employment status. Again, you’ll want to double check to confirm that at least the wages are correct, and it’s up to you how much attention you’d like to give to reviewing the rest of the details.
  • Note that boxes 1 + 2 are specific to federal income
  • Boxes 15 through 20 get down to the state and local level, which will help you fill out tax returns in those areas.

 

Starting your tax return with it It is pretty seamless to start your tax returns with your W-2. The IRS does a good job of pointing you to where you need to go to make the connection between the W-2 and the form 1040 you are filling out. You’ll also be sending in a copy of your W-2 to the IRS when filing. Similar to the W-2 is the 1099 – essentially the equivalent for contract employees. We’ll take a look at that one next.

 

Source(s): IRS

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