By now, millions of workers should have received their W-2 tax form from their employer. The official deadline for employers to distribute the all-important tax document was Jan. 31.
W-2 forms are used by employers to report their employees’ annual wages and any federal, state and local taxes withheld from their paycheck. Tax regulators rely on forms like the W-2 to make sure that taxpayers’ reported income matches up with their reported earnings from employers.
Whether you plan to take your W-2 form straight to a professional tax preparer or go the do-it-yourself route with tax-filing software, you should understand what’s on your W-2 form and what to do once it hits your mailbox.
[See: Answers to 7 Burning Tax Questions.]
Check for accuracy. Before you file your taxes, check for any incorrect information, says Susan Gallagher-Smith, a Eugene, Oregon-based tax consultant and member of the National Association of Enrolled Agents.
Key areas to look for are the correct spelling of your name, the accuracy of your earnings and withholding amounts and the correct Social Security number.
“If you find an error, you should contact your employer or prior employer immediately and request a correction,” Gallagher-Smith says.
Don’t assume that you don’t need to file if your earnings were low. Depending on your gross annual income, your age and your filing status, you may not be legally required to file taxes at all.
But that doesn’t mean that you shouldn’t file anyway, especially if your employers were withholding taxes throughout the year, or if you qualify for a potentially lucrative tax credit, like the Earned Income Tax Credit.
“After all, it’s your money,” says Cindy Hockenberry, an enrolled agent in Appleton, Wisconsin.
For many workers, the main benefit of filing taxes is the potential to receive a tax refund, which you may get if you have qualifying tax deductions, or you have overpaid taxes during the year.
For example, a single parent who earned less than $47,955 in 2016 and has three children could qualify for an earned income tax credit of up to $6,269.
If you’re unsure about whether you should file federal income taxes this year, use this easy tool from the IRS to find out.
[See: 7 Most-Missed Tax Deductions and Credits.]
Collect multiple W-2s before you file. If you have worked for multiple employers in the last calendar year, then you will likely receive some kind of tax form from each of your employers. It’s best to wait until you have all of your W-2 forms before filing your taxes.
“Try to be patient. I understand wanting to be done with the process of filing your taxes as soon as possible. It is more important to file a complete and accurate income tax return than it is to file early,” Gallagher-Smith says.
Although you can amend a tax return for up to two to three years after filing, it could be an unnecessary headache, she says. The process of amending or correcting a previously submitted tax return can get complicated and could delay processing your return or a refund.
Locate a missing W-2. Your employer’s human resources department should be able to locate your missing W-2. If the tax deadline is rapidly approaching, and you are still missing one or more W-2 forms, you can contact the IRS helpline at 800-829-1040. Gallagher-Smith says not to file your taxes without the missing form.
“You may be tempted to file your income tax return without the missing form W-2, but don’t fall for temptation. It may cause more trouble down the line,” Gallagher-Smith says.
As an alternative, request a filing extension if you need extra time to find the missing form. If you file for an extension, be sure to check with your state income tax authority to determine if you are required to file an additional extension request.
If you’re not sure whether you should be waiting on a W-2 form or not, you can get to your answer fairly easily, Hockenberry says. “Ask yourself this simple question: ‘Did I work for anyone this past year?’ If you answer yes, and the employer withheld any amount of income tax, Social Security tax or Medicare tax, you should expect a W-2,” Hockenberry says.
She warns taxpayers not to make the mistake of thinking income wasn’t taxable simply because they didn’t receive a W-2. If you earned enough to necessitate filing taxes but you don’t report your full income to the IRS, you may eventually receive a letter asking why some income was omitted.
Gallagher-Smith recommends contacting the IRS and asking for help if you didn’t get a W-2 by Feb. 14. You’ll likely need to give your full name and address to verify your identity.
[See: 10 Smart Ways to Spend Your Tax Refund.]
Here are a few legitimate reasons why you may not get a W-2 form.
Your contact information is wrong. Mistakes happen. Your employer may just have gotten your contact information wrong. Check with your employer’s human resources department to verify that your W-2 was sent to the correct mailing address. These days, it may be possible to get an electronic version of your W-2, rather than waiting for a paper copy to be sent to the correct address.
You worked as an independent contractor. If you worked as an independent contractor, don’t expect a W-2. You should receive a 1099 from each business for which you provided services.
You earned less than $600 with the employer, and the employer did not withhold income, Social Security or Medicare taxes. In that case, your employer doesn’t need to send you a W-2 form, Gallagher-Smith says.
So, if you were paid less than $600 for the year without taxes withheld, don’t sweat looking for a nonexistent W-2.
If you reach out to your employer but are unsuccessful, you can collect your pay stubs and submit a substitute for the W-2 — Form 4852 — with your tax return.
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What to Do After You Receive Your W-2 Tax Form originally appeared on usnews.com
