Filing Tax on W2 Forms
Each and every person who is employed and their employer pays them on a non-cash basis, there is need to fill out the W-2 form for any amount equal to six hundred dollars and above. This form is the one that shows the amount paid by an employer, the taxes withheld as well as the employee’s social security number. When an employee is preparing his or her tax return, on the W-2 form, the amount withheld is usually deducted from the tax that’s 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.
During the filing process, it is wise that every employee knows that the amount on the W-2 form is sent to the Internal Revenue Service by the employer and if the amounts tend to differ with what the employee has filed, the Internal Revenue Service may become suspicious. It is normal for every employee to have three W-2 forms. One of the forms is sent by the employer to the internal revenue service, the other one is sent to the employee and the third form is for the employer for record keeping.
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. All submissions should be done on or before February 29 as that is the deadline set by the Internal Revenue Service. There are six copies of the W-2 form. The breakdown of the form is as listed below.
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. Copy C is the third one and this copy is usually sent to an employee so that they can keep their own records. 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. Copy 2 is the last one and this is sent to an employer so that they can also file for state or local income tax returns, if at all there is any.
In conclusion, filing for income tax returns should be taken seriously by both employers and employees. This is because failure to do so can bring about unexpected implications from the Internal Revenue Service. All employees entitled to wages and salaries must fill the W-2 forms and submit as required to avoid getting penalized.