Filing Tax on W2 Forms
For every person that is employed and receives noncash payments from their employer, all amounts equal or exceeding six hundred dollars requires the person the funds were paid to, to fill out a W-2 form. The W-2 form is the form that shows the amount received, taxes withheld and also an employee’s social security number. When an employee is preparing tax returns for a given year, it is on the W-2 form where the tax withheld is deducted from the tax that is due. There are chances of an employee getting a refund from the Internal Revenue Service if the amount of the income that was withheld was more than necessary.
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. 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.
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. Written below is how the copies are broken down.
Copy A is normally the first one which is usually submitted by an 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. 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. The sixth copy, Copy 2 is meant to be the employers copy so as to file for state or local income tax returns, if any.
To conclude, it is recommended that seriousness should prevail from both employers and employees when it comes to filing income tax returns. There can be serious consequences that may arise if either the employer or the employee fails to play their part right. Therefore, for all employees that are entitled to wages and also salaries, there is need to fill out the W-2 form when it is time to avoid being penalized by the Internal Revenue Service.