What Is a W-2 Tax Form? A Guide

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What is a W-2 tax form? This is a question that many people ask during tax season.

A W-2 tax form is an important document that employers must provide to their employees. It shows how much money you earned and what taxes were withheld from those earnings.

In this article, we will discuss what a W-2 tax form is and what it contains. We will also provide a guide on how to complete the form correctly. Let’s get started!

What Is a W-2 Form?

A W-2 tax form is an important document that employers must provide to their employees. It shows how much money you earned and what taxes were withheld from those earnings. The form is also used to report wages paid to employees and the amount of income tax, social security tax, and Medicare tax withheld from those wages.

The W2 form has two parts: Part A and Part B. Part A is for employers to report wages paid to employees while Part B is for employees to report their income, deductions, credits, etc.

Why Is a W-2 Form Important?

A W-2 tax form is important because it helps employees to file their taxes correctly. The form shows how much money you earned and what taxes were withheld from those earnings. This information can help calculate the amount of income tax that you owe.

You need a W-2 tax form to file your federal income tax return. It is also used to report wages paid to employees and the amount of income tax, social security tax, and Medicare tax withheld from those wages.

What Should You Do if You Don’t Receive a W-2 Form?

If you do not receive a W-2 form, contact your employer immediately. Your employer should be able to provide you with a copy of the form.

If you are unable to obtain a copy of the form from your employer, you can contact the IRS for assistance. You can also get my W2 online

How to Fill Out a W-2 Form

As you can see, a W-2 is one of the most important employment tax forms. Below, we’ll teach you how to complete your W-2 tax form without any mistakes.

Box A: Employee Social Security Number

Enter your social security number in Box A. This is the identification number used by the Social Security Administration (SSA).

Box B: Employer Identification Number (EIN)

Enter your employer’s EIN in Box B. This is the identification number used by the IRS to track payroll taxes.

Box C: Employer’s Information

Your employer will be responsible for filling out this field. They’ll put in their business name and office address.

Box D: Control Number

The control number is a unique identifier used by the IRS. It will be automatically generated and you shouldn’t change it. If you don’t have a control number, be sure to leave this box blank.

Boxes E & F: Employee’s Information

You should enter your name and address in these boxes. Make sure the mailing address is an official address given by the United States Postal Service (USPS).

Box 1: Wages, Tips, and Other Compensation

This is the total amount of money that you earned. This includes wages, tips, bonuses, commissions, and other compensation.

Box 2: Federal Income Tax Withholding

This is the total amount of federal income tax that was withheld from the employee’s wages. This is an important figure that influences how much money you’ll receive in a tax return.

Box 3: Social Security Wages

This is the total amount of social security wages that your employer paid you. It’s important to note that this figure includes both taxable and non-taxable income.

Box 4: Social Security Tax Withholding

This is the total amount of social security tax that was withheld from the employee’s wages. This amount will be important later upon your retirement.

Box 5: Medicare Wages and Tips

This is the total amount of Medicare wages and tips you received from your employer. As an employee, you don’t have to double-check this field. It mostly pertains to employers.

Box 6: Medicare Tax Withholding

This is the total amount of Medicare tax that was withheld from the employee’s wages. This is another field that your employer should fill out.

Box 7: Social Security Tips

If the employee received tips, they should enter them here. The total amount of tips should match the amount listed in Box 1.

Box 8: Allocated Tips

If the employee did not receive all of their tips, the allocated tips box should be filled out. This is used to report any tip income that was received but not reported in Box 1.

Box 9: Blank

This box is for future use. It will be used to report any additional information that was not included in the other boxes.

Box 10: Dependent Care Benefits

If the employee received dependent care benefits, they should be entered in this box. This includes any money that was paid to a daycare provider or someone who cared for the employee’s dependents.

Box 11: Non-Qualified Plans

If the employee participated in a non-qualified plan, they should be entered in this box. This includes any type of deferred compensation plan that is not subject to social security or Medicare taxes.

Box 12: Codes

The codes in Box 12 should be matched with the corresponding definitions. This will help to clarify what each code means.

Box 13: Fill Out the Checkboxes

There are a few checkboxes in Box 13 that should be filled out. The first is for state income tax withholding. If the employee had taxes withheld from their paychecks, it should be checked here.

The second checkbox is for local income tax withholding. This only applies to employees who live in certain states.

The third box is for retirement plan contributions. If the employee made any retirement plan contributions, they should check this box.

Learn More About Payroll Tax Forms

As you can see, learning what is a W-2 isn’t difficult. The information in this article will help you better prepare for tax season 2022 and file your federal taxes.

Do you want to learn more about tax law? If so, check out more helpful articles from our blog.

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