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What are W2 earnings?

Joe Ford

What are W2 earnings?

A W-2 earnings statement from an employer is a key document for completing your taxes. It’s a snapshot of how much an employer has paid you throughout the year, how much tax they’ve withheld from your paycheck, and other payroll withholdings that can affect your tax obligation.

Do you get money from W2?

If you are owed a refund, then the earlier you submit your return, the earlier you will get your money from the IRS. If your W-2 was sent to you by email, you should print a copy for your records. You’ll need to hang on to this and your other tax documents for three years after you file your return.

Why do I have to pay for my W2?

The IRS requires employers to report wage and salary information for employees on Form W-2. Your W-2 also reports the amount of federal, state and other taxes withheld from your paycheck. As an employee, the information on your W-2 is extremely important when preparing your tax return.

What is the W2 Box 2?

The W2 boxes and codes show the wages you’ve earned and any taxes paid through withholding. Box 2 — Shows the total federal income tax that was withheld from your paycheck for the year. Include this amount on the federal income tax withheld line of your return (Form 1040, line 16).

What box on a W2 shows gross income?

Your gross income stated in Box 1 of your W-2 is essential in filing your taxes, as it shows your wages subject to federal income tax. Boxes 3 and 5 of the W-2 show your gross income that is subject to Social Security and Medicare taxes.

Why is Box 2 on my W2 blank?

If Box 2 on your Form W-2 is empty, it means that federal taxes were not withheld from your paychecks. Note: If you believe that you did have federal taxes withheld from your wages, you should contact your employer and request a corrected W-2 before you file your tax return.

What are the W2 Box 12 codes?

The W2 Box 12 codes are:

  • A — Uncollected Social Security or RRTA tax on tips.
  • B — Uncollected Medicare tax on tips.
  • C — Taxable costs of group-term life insurance over $50,000 (included in W-2 boxes 1,3 (up to Social Security wages base), and box 5.
  • D — Elective deferral under a 401(k) cash or arrangement plan.

What is Code V on W2 Box 14?

Code “V” in Box 14 refers to contributions you made to “Non-Taxable Health Benefits”.