Tag Archives for " TAX FORM "

COMMON FORMS TO LOOK FOR

 

  • W-2: This is the form you receive from a reg­u­lar employ­er. This form includes infor­ma­tion about your wages and oth­er earn­ings (includ­ing tips, if applic­a­ble). This form also includes infor­ma­tion about how much you have paid in fed­er­al and state tax­es over the course of the year, as well as your pay­roll tax­es.
  • 1099-KIf you earned income as a free­lancer work­ing in the on-demand econ­o­my like Uber or Lyft you may see this form. Form 1099-K reports income processed through third-par­ty net­works, such as Pay­Pal. A pay­ment proces­sor must report income to the IRS using Form 1099-K if your gross pay­ments:
    • Exceed $20,000, AND
    • Exceed 200 trans­ac­tions with­in the tax year
  • 1099-MISC: More and more peo­ple do con­tract work on the side, as free­lancers and con­sul­tants. If you have received earn­ings from such activ­i­ties you can expect to receive a 1099-MISC.
  • Oth­er 1099 forms: The 1099-MISC isn’t the only 1099 form you might receive. If you received inter­est from sav­ings or invest­ments, you will get a 1099-INT. You might also receive 1099-DIV report­ing div­i­dends and dis­tri­b­u­tions from invest­ments, or a 1099-C if you have can­celed debt.
  • 1098: This is the form asso­ci­at­ed with mort­gage inter­est you have paid dur­ing the year. If you item­ize your deduc­tions, this form can be extreme­ly help­ful in ensur­ing that you get the right amount list­ed.

w2 FORM

The W-2 form reports an employee’s annu­al wages and the amount of tax­es with­held from his or her pay­check and is use to file your fed­er­al and state tax­es.

 

A W-4 is a form that indi­vid­u­als com­plete for with­hold­ing pur­pos­es, where a W-2 form is for employ­ers to actu­al­ly  fill out. The employ­er must pro­vide the employ­ee their W-2 form by a cer­tain date that is set by the IRS. A employ­er must legal­ly give out a w2 to any per­son who has worked for the com­pa­ny for any amount of mon­ey, does­nt mat­ter the amount. Also for those work­ing for any oth­er forms of com­pen­sa­tion.  The employ­er must send the employ­ee the W-2 Form on or before Jan­u­ary 31st each year so the employ­ee has ample time to file his or her tax­es before the dead­line, April 15. (depend­ing on irs)

W-2 is the most com­mon tax form, there are oth­ers that apply only to spe­cif­ic cir­cum­stances. Con­tract­ed employ­ees must fill out  a W-9 Form pri­or to work, and they are giv­en a 1099 Form by the com­pa­ny for which they pro­vid­ed ser­vice, but only if they com­plet­ed $400 worth of work or more. They are con­sid­ered con­trac­tors and have no tax­es tak­en out of the income they recieve through the year. Stu­dents receive a Form 1098 if they paid inter­est on col­lege tuition or a stu­dent loan that year.

The fields on a W-2 Form pro­vide  all types of income. There is a box that states the total amount of mon­ey the employ­ee made from that employ­er in the year, which is the same for fed­er­al and state. some of the oth­er field indi­cate the amount of tax­es that were with­held from the employee’s pay­checks, sep­a­rat­ed by fed­er­al income tax, social secu­ri­ty wages, social secu­ri­ty tax, and more. There are also fields that show how much mon­ey in tips the employ­ee report­ed for the year, which applies to any jobs that allow the employ­ee to col­lect tips. Like wait­ress or bar­tenders and such.

Some oth­ers things are the employ­ers EIN which is the EMPLOYER IDENTIFICATION NUMBER.