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W2 Forms: How to Create and File Income Returns

For every person that is employed and receives noncash payments from their employer, all amounts equal or exceeding six hundred dollars requires the person the funds were paid to, to fill out a W-2 form. The form simply indicates the income paid as well as the social security number of the employee, and taxes withheld. When an employee is preparing tax returns for a given year, it is on the W-2 form where the tax withheld is deducted from the tax that is due. In case the amount withheld from an employee’s income is more than necessary, it is possible for the employee to get a refund from the Internal Revenue Service.

It is wise for an employee to be aware that the amount on the W-2 form sent to the Internal Revenue Service should match with the one the employee files as differences may raise suspicion from the Internal Revenue Service. 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.

The deadline set by the Internal Revenue Service for employers to send to their employees the W-2 forms is the thirty first of January. The Internal Revenue Service has also set a deadline for submission of the W-2 forms by employees on February 29. There are usually six copies for every 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 other copy, Copy B is sent to the employee whereby the employee files 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. The fourth copy, Copy D is kept by the employer also for purposes of record keeping. 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. The sixth copy, Copy 2 is meant to be the employers copy so as to file for state or local income tax returns, if any.

To conclude, the process of filing for income tax returns should be done with caution by both employees and their employers. This is because failure to do so can bring about unexpected implications from the Internal Revenue Service. It is mandatory for all employees who earn wages and salaries to fill out the W-2 forms as expected because failure to can lead to one being penalized.

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