Home | Personal Finance | A brief overview of the W-2 tax form
A brief overview of the W-2 tax form

The amount of taxes withheld from the paycheck for a financial year is used to file federal and state taxes. This amount is shown in W-2 forms.

The Internal Revenue Service (IRS) needs employers to mention the salary, wage details, and other information of their employees on the W-2 tax forms. This tax form also mentions information about all the federal, state, and any other taxes that are withheld from your paycheck. All the details in your W-2 form are extremely important when your preparing for filing the returns. This is crucial for the employee. To make sure that you do not miss out on the filing of this tax form, the IRS ensures that they send the form to the employer not later than January 31st, following the close of the financial year that is on December 31st.

Only an employee can receive the W-2 tax form. In case you are self-employed or an independent contractor, you would get the statements of earnings on Form 1099 and not receive the W-2 form.

The W-2 form is bifurcated into different boxes that shows numerous items that are related to your income. The first box is for the annual salary payments and wage along with the information regarding the federal tax that is being withheld in the second box.

It is to be noted here that just a part of your income is subject to the Social Security tax. The third box of the form reports the amount that is less than your total income for the financial year. The other parts of W-2 tax forms include Social Security tax, Medicare taxes that are pending, and other information with respect to the employees’ state income tax that is being withheld.

The identifying information segment of the W-2 tax forms is a vital section that can be noted by the IRS in cases where your reported income and information on W-2 tax forms do not match. Moreover, the accuracy of the reported income is checked by matching the payments stated with the corporate tax return policy of your employer. Also, the IRS receives a copy of the W-2 tax forms and are aware how much tax you owe. So, in case your name and Social Security number on your tax forms is inaccurate, make sure to immediately report the same and ask your employer to correct it.

Remember when you are filing your tax returns, a copy of W-2 tax forms must always be attached. In case you are e-filing your returns then the information of your W-2 is sent with the tax return; however, if you are filing the return by mail, you will need to place a hard copy of the W-2 tax form with your return.

Featured Products

Featured Blogs

  • The uniqueness of Pfaltzgraff tableware
  • Things you must ask yourself before choosing a satellite TV or internet service provider
  • Tips to Buy the Right Car Battery

Recent Blogs

  • Points to help compare business laptops based on the operating system

    Choosing from the best business laptops is not an easy task as there are many variants of laptops available in the market today. Some factors can however help narrow down the choice include:

    The size: The display size can give a lot of clues in case the requirement is that of a portable laptop.

    • Laptops with screen sizes between 11 to 12 inches are the lightest and thinnest systems. There dimensions are limited to this size and they can weigh anywhere between 2.5 to 3.5 pounds.
    • If the chosen model weighs under 4 pounds, a laptop with the dimensions that fall between 13 to 14 inches provide the best balance of portability, battery life and ease of usage.
    • Weighing between 4.5 to 6.5 pounds, 15 inches size laptops are by far the most popular. Not too good for portability but still portable enough, this screen size makes for decent best business laptops purchase.
    • For a machine that offers good processing power for work station level productivity, a machine with dimensions of 17 to 18 inches works well, when placed on a desk for all day use.

    Platform: Chrome, Windows or Mac?

    Almost all of the laptops available in the market come with an operating system that is either Windows, Mac or Chrome. One can use any of these for best business laptops, but the features can vary and affect the working at different levels.

    Chrome OS: The Lenovo 100S Chromebook that comes with Google’s Operating System is a good example of the inexpensive “Chrome books.” Its user interface is very similar to that of Windows, as it too has a desktop, an application menu, and the capability that lets the user drag windows around. The main app of use is the Chrome browser but the main disadvantage of using it is that many web applications are unable to work properly offline.

    Chrome books have established themselves in the market as highly portable, inexpensive best business laptops, especially for basic use like checking emails, web surfing, using social media and online chatting, all of it coupled with a good battery life in terms of best small business laptop.

    MacOS: MacOS Sierra is the latest OS brought out by Apple, and this operating system runs across all MacBooks. In terms of similarity of function, it is very similar to Windows 10. The main difference is in the user interface, since the macOS has an interface that substitutes an apps dock at the bottom of the main desktop screen. In case of Microsoft OS, this is replaced by the Start menu and taskbar by Microsoft. In place of the Cortana digital assistant, Apple has Siri.

    Windows: Windows 10 operating system is known to be one of the most flexible operating systems in terms of available customizations and features. Windows operating systems offer features like dual graphics chips, touch screens and fingerprint readers and these fall in a price range of $150 to several thousands of dollars.

    Budget

    In terms of setting a budget for the best business laptops, one can get best small business laptop for a price range that falls between $150 to $250. For example, the least-expensive notebooks are either Chrome books, which run Google’s OS or Windows systems that come with minimal storage and are low end. Lenovo Idea pad 100S and the HP Stream, the processors are slow too.

    To make for a good machine in a decent price range, a laptop with an Intel Core i5 or AMD A8 CPU, 4 to 8GB of RAM, and a 500GB hard drive can be bought between the price tag of $350 to $600.

  • Opioid for chronic pain

    One of the more common treatments for chronic pain is opioids. However, there are fears associated with addiction when one is prescribed opioids. If opioids are taken in the manner they are prescribed, chances of addiction are very low. Addiction only occurs when there are some predisposing factors involved. One of these predisposing factors is a family history or history of addiction. Not only substance abuse, but a history or family history of psychiatric illnesses also influence addiction. The American Pain Society defines addiction, tolerance and physical dependence as follows:

    • Addiction: Addiction is not just psychological. It is also genetic. Addiction is an unexplainable craving for something, which is called the abused substance, and a nonstop, compulsive use of it even when the person using it is harmed because of it. Along with genetic influence, the development and manifestation of any addictive behaviour are also caused by environmental influences. It’s a classic case of both nature and nurture playing a role in behaviour
    • Tolerance: Tolerance is what happens when one has had prolonged exposure to a drug. Because of prolonged exposure, the effect of the drug becomes less and less potent in the person taking it, until it ceases to have any effect at all.
    • Physical Dependence: This is manifested in the form of withdrawal symptoms when one stops using a drug abruptly, or when the dosage of the drug is rapidly reduced. An opioid antagonist when given to someone who is taking opioid manifests withdrawal symptoms which are a process of adaptation. It takes about a minimum of 6 hours to a maximum of 72 hours for withdrawal symptoms to go away. These symptoms include pain in the abdomen, nausea, throwing up or diarrhoea. These also occur if one stops taking opioid after a two-week usage. However, this is not a sign of addiction. It is the body adapting to the change.

    If prescribed opioids, ensure they are taken in an exact manner predicted. Should the pain continue even after taking opioids, do not increases the dosage without consulting your doctor first. If necessary, take long acting opioids as opposed to the short acting ones because these don’t give a euphoric sensation.

  • How can you obtain a copy of your car accident report

    Car accident reports will include all the particulars of the mishap. However, a complete report can only be prepared when all factors which might affect your claim or verdict in case you want to press charges against the person responsible.

    Details of both the vehicles, drivers, third party witnesses, a police officer investigating the case should be included in the report for your hired representative to make a strong case in your favor. Even details like the type of accident and extent of damage will make or break your case.

    The most common car crashes include rear end collisions, vehicle accidents caused due to extreme or unpredictable weather conditions, T-bone and cross traffic accidents, clipping other vehicles while switching lanes, even your day to day fender bender are all included in the list.

    There are a few steps you need to follow to get a car accident report from the relevant authorities, in this case the department of motor vehicles. A database of all the accident cases is maintained by the DMV which you can avail for your reference.

    Here is how you can get a copy of your car accident report:

    • Log in to the official website of the DMV and search for the tab named “Order and access motor vehicle accident reports.” A search fee of $7 is charged to access your report which can be searched using the accident case number or vehicle plate number or the driver’s license number.
    • It takes 14 to 30 days from the date of the accident for the report to be available in the database. It will take 14 days if the car accident report was filed electronically and 30 days in case a physical copy of the same was submitted to the DMV. In general, car accident reports might at least take 60 days for the same to be available in the database.
    • Apart from the search fee of $7, you will need to pay an additional $15 to order a copy of the report. The search fee will be charged irrespective of whether the report is available to order and the search fee is nonrefundable.
    • If you do not wish to access and order your car accident report online, a copy of the same can be ordered via postal service for which a search fee of $10 is charged with the standard $15 to order a physical copy.