All You Need To Know About W-2 Income Statement
Most of the government in the world today get revenue from taxes which is the primary source of revenue. It is hard to escape from paying taxes because of the penalties that many governments have imposed for avoiding or file their returns late. There are different types of taxes that is the direct and indirect taxes, for instance, if you are employed, you are expected to be taxed from the income.
A W-2 form is a form used by the internal revenue services used in the United States showing wages paid to employees and also the taxes withheld from the income. An employer, therefore, is required by the government to ensure that they withhold some amount of money from your income every time they are paying the wages and they should ensure that they are recorded in the W-2 form. It is the responsibility of the employer also to ensure that they send the W-2 forms to their employees that is before the year ends or before January 31 so that the employee can have enough time to fill the form and also file the returns on time. Having the form with you is important because it helps you in filing your income taxes for the federal and state government. For more insights regarding tax, visit https://www.huffingtonpost.com/topic/tax-refunds.
The W-2 form contains different parts and whether it sent electrical or through a mail, you will find three copies which are identical. If it is your first time to receive the W-2 forms, it can be hectic because it has many boxes that contain information and numbers and you can be a bit confusing. Box A- F requires you to fill it with the employer's information and also your personal information such as the employer's tax ID, your full name, your current address, Social Security number, the address of your job and so on. What Does A W2 Income Statement Look Like?
Not every income is taxable and that why box 1 is supposed to have the total amount of income you earned during the fiscal year that are taxable. The boxes from 2-6 will show you important information of the tax withheld from you from your income tax therefore, containing Medicare tax, Social Security tax, federal income tax, and state income tax.Boxes 7-10 will contain important information that is including in a special form of income such as reimbursement, income credit and so on. The box from 11 to 12 will contain deferred compensation plan information and if you don't understand that you can consult with the employer. If there is any additional tax that is being levied from you, it will be indicated in box 13 and 14 while box 15 will contain the same information with box 2-6. What Does A W-2 Look Like?