As of May 2020, about 128.2 million people filed their individual taxes.
One way that many people file their taxes is by using a W2 form that they get from their employer.
If this is your first time filing taxes, you might be wondering how to read a W2 form. Thankfully we have all the information to help you file your taxes while also understanding your W2!
What Information is On Your W2?
When you get your W2, you might be wondering what kind of information is even on it. Well, this is a standard form that the IRS issues out, and it has relevant tax information you’ll need to file your taxes in April.
You’ll be able to find your name, address, social security number, identification numbers for your employer, wages you earned, and how much tax was withheld.
If you aren’t sure about anything on your W2 or think it’s wrong, you might be wondering: “What is the best w2 generator and calculator?” They’ll be able to help you figure out how to fix your W2.
How Do I Read It?
Once you break down what all of the boxes, numbers, and letters mean, it’s actually very easy to understand what your W2 is telling you.
We’ll help break it down for you.
Boxes A through F
If you look at Boxes A through F, you’ll be able to find your name, your address, and your social security number.
You’ll also be able to find information on your employer, like their EIN and state ID. You’ll also see their name and address.
Boxes 1 and 2
If you look below A through F, you’ll see Boxes 1 and 2.
In Box 1, you’ll see how much of your income was taxable, and it’ll break down how much you earned in your wages, salary, bonuses, and tips.
In Box 2, you’ll see how much federal income tax the employer took out from your wages that you earned.
Boxes 3 and 4
In Box 3, you’ll see how much of your earnings were applicable to be taxed for Social Security.
And then when you look at Box 4, you’ll see how much they actually took out for that.
Boxes 5 and 6
For Box 5, you can see the same thing, except this one will be for Medicare.
Box 6 will show you how much of your money went toward paying the Medicare tax.
Boxes 7 and 8
If part of your job includes getting tips, your boss will report how much you made, and they’ll put it in Box 8.
How much you reported in tips will be in Box 7.
Learn More About How to Read a W2 Form
These are only a few of the most important boxes that most people will need in order to understand how to read a W2 form.
We know that filing taxes can be overwhelming and stressful, but thankfully you don’t have to do it alone. We’re here to help!
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