How is w2 generated

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Our opinions are our own. Here is a list of our partners and here's how we make money. A Form W-2 is more than just a piece of paper; it's one of the most important records you need at tax time.

Here's what a W-2 is, how to understand what's on it and how to get your W Employees use Form W-2 to prepare their tax returns. Tip income may be on your W Freelancers or independent contract workers get s from their clients, not W-2s. If you're looking for a copy of an old W-2 that you attached to a prior tax return and you can't get a copy from the employer that originally issued it, you can request an IRS tax transcript online or use IRS Form to request a copy of your tax return.

Your employer may also tell you how to get your W-2 online from the HR department or payroll processor. Remember that your tax return is still due by the tax-filing deadline , so if you don't have your W-2, you might need to estimate your earnings and withholdings to get it done on time.

Go here to learn more about getting an extension. The IRS might delay processing your return — read: refund — while it tries to verify your information. If your W-2 finally shows up after you already filed your tax return, you might need to go back and amend your tax return.

That means you may be able to get yours online. Even if you quit your job months ago, your ex-employer can still wait until Jan. Our list of IRS customer service phone numbers might get you help faster. Your Form W-2 tells you how much you earned from your employer in the past year and how much withholding tax you've already paid on those earnings. Other boxes on the W-2 form include your wages subject to Medicare tax, Social Security taxes that are withheld and information on your state income tax withholding, if applicable.

When your employer withholds amounts from your paycheck for federal income taxes, those amounts are remitted to the IRS throughout the year. You may not realize it, but in most cases, you cannot wait until the filing deadline to pay your entire tax bill. The IRS requires everyone to make periodic payments throughout the year; however, your employer takes care of this for you. When you prepare your federal return and calculate your tax for the year, the withholding amount your employer reports on the W-2 must be subtracted from your tax bill.

Once you perform this calculation, you will know whether to expect a refund or make an additional tax payment. If you file a state income tax return, the same calculation is necessary for the amount withheld to pay your state income taxes. The identifying information section of the W-2 is essentially a tracking feature. If the income you report on your taxes does not match the information on your W-2, the IRS will want to know why.

Similarly, the IRS will match the reported payment amounts with your employer's corporate tax return for accuracy. But most importantly, since the IRS receives a copy of your W-2, it already knows whether you owe tax and may contact you if you fail to file a tax return. If the name or Social Security number on your W-2 is inaccurate, you should immediately report this to your employer to correct. When you finish your tax returns and get ready to file them, remember that a copy of your W-2 must always be attached.

If you e-file using TurboTax then your W-2 information is sent along with your tax return. However, if you are filing your tax return by mail then you need to place a copy on the front of your return. Remember, with TurboTax , we'll ask you simple questions about your life and help you fill out all the right tax forms.

Whether you have a simple or complex tax situation, we've got you covered. Feel confident doing your own taxes. However, if you are filing your tax return by mail, then you must include a copy with your return. Box number 1 contains your gross wages, tips and other compensation for the year. Boxes 2 and 17 tell you how much money was withheld in federal and state income tax, respectively, for the year.

The number from box 1, your income, is reported on line 7 of your Form Federal taxes withheld in box 2 is reported on line 62 of your Box a: Reports your Social Security number. Ensure this is correct. An incorrect SSN can delay the processing of your tax return.

An EIN is a nine-digit number assigned to your employer by the IRS and used to identify the tax accounts of employers.

Box c: Reports the legal address of your employer. This may or may not be the actual address of where you work, depending if your employer has multiple offices with a corporate site. This may or may not be blank. Box e and f: Your legal name, as it reads on your Social Security card, appears in box e and your mailing address is reported in box f. Double-check both of these are correct. If that information is incorrect, it could delay the processing of your return. Box 1: Shows your total taxable wages, tips, prizes and other compensation for the year, minus certain elective deferrals, such as k plans, pretax benefits and payroll deductions.

Box 2: Reports the total federal income tax withheld from your pay during the year. This amount is based on the number of exemptions claimed on your Form W Box 4: The total Social Security taxes withheld from your pay for the year. Unlike federal income taxes, Social Security taxes are calculated based on a flat rate of 6.