What Is A W-2 Tax Form?

What is a W-2 Tax Form Tax Preparer

W-2 Tax Form is the wage and tax statement that each employer should send to their employees and the IRS at the end of each financial year. 

Why Is It Important For Taxation?

W-2 Tax Form shows the income that you have earned and the taxes that need to be reported to the IRS from the previous year. It is also used by employers to report FICA (Federal Insurance Contributions Act) taxes on their employees. Most importantly, the W-2 Tax Form is used by the IRS to track a person’s tax obligations. 

What Happens After You Get A W-2 Tax Form?

First thing you need to remember is you need to submit your return by April 15th as that is the final day of submission. 

Steps For How To Read A W-2 Tax Form:

As the Best Tax Professionals in Atlanta, GA, it is our duty to help you understand your taxes. A W-2 Form has many boxes that have different purposes and we will guide you through each one. 

  1. Box A – This includes your Social Security number.
  2. Box B – This includes your Employer’s Identification Number (EIN)
  3. Box C – This includes your employer’s residential details.
  4. Box D This is an optional part, it includes a code given by your employer.
  5. Box E – This should be your legal name.
  6. Box F – This should be your legal address.
  7. Box 1 This is your total wages and other financial assets you have acquired throughout the year.
  8. Box 2 This is the amount of federal income tax that was withheld from your paycheck for the year.
  9. Box 3 This number shows how much of your income was subject to Social Security tax.
  10. Box 4 This is how much Social Security Tax was withheld from your paycheck for the year.
  11. Box 5 This number shows how much of your wages were subject to medical taxes.
  12. Box 6 This is how much Medicare Tax was withheld from your paycheck for the year.
  13. Box 7 If you reported tips to your employer, that amount is shown here.
  14. Box 8 If your employer allocates tips, to you that amount is shown here.
  15. Box 10 If you get dependent care benefits from your employer, this amount is shown here.
  16. Box 12 Your employer can enter a code (or codes) in Box 12 to indicate things like adoption benefits, contributions to an HSA account, nontaxable sick pay, uncollected Social Security or Medicare taxes, etc. If you are unsure what a code means, you can ask your employer or find the description on the list of codes attached to the W-2 form.
  17. Box 13 If the “Retirement plan” box is checked Box 3, it means that special limits may apply to the amount of traditional IRA contributions you can deduct.
  18. Box 14 This box can account for lots of different things, like union dues, health insurance premiums, nontaxable income, and education assistance payments. Your employer can put any description they choose in this box. There aren’t specific codes, so if you are confused about the info in this section, ask your employer for more clarity.

How AATCA Can Help You?

We can help you get through the entire process starting from acquiring the form and getting all the necessary details. At AATCA, we are prepared to help you with every financial issue. We understand the complexities that tax forms and laws involve and so as the Best Tax Preparation Atlanta Service, we are eager to help you with your financial needs.

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