Understanding What a W2 Income Statement Looks like
Deducting the taxes that you have in your income is a responsibility that your employer will need to do once you are employed. Whenever you are an employee of a company then this needs to be done. When you are a freelance or a contracted worker then you are not involved in this one. All of the information that you have will be collected by the employer and will place it in a form known as the W2. It is this form that will be received by both you and the IRS. This is this form that used so that the federal and state income taxes that you have can be filed. A check which is known as a tax return is what you are also able to receive depending on the tax situation that you have. When looking at these forms that they should be sent through the mail or sent to yr employer in a sealed document.
There are many different boxes that you are able to see once you will look at a W2 form. These boxes also will have different information and numbers on it. Easier than what they look like is what these boxes are. It is the boxes from A-F that will need the personal information that you have a well as your employer. It is these boxes that will need information like your social security number, your employer’s tax ID, the address of your job, your full name, and your current address.
The income that you have within one fiscal year is the information needed in box 1. You need to remember that not all income can be taxable and it is important to know the exact income that you have.
The income that was withheld for taxes will be shown in boxes 2-6. The federal income tax, state income tax, Medicare, social security tax, and more will be the basis for this one. Whenever you will plan to file your taxes then this information is needed by you.
The different incomes that you have in a special form is what should be placed in boxes 7-10. These are the types of incomes that will be including tips, reimbursement, and income credits. It is the deferred compensations that you have that will be placed in boxes 11-12. Getting to know this information more can be done by you once you will be talking to your employer.
It is the box 13 that will show whether you are a statutory employee. It is also this one that will show if you have participated in your employer’s retirement program, or if you received any third-party sick pay. The additional tax information that your employer finds important will be shown in box 14. When looking at boxes 16-20 that it will still show the state income tax information.