Think of a W-2 form as an annual report card from your employer, only this one's for the IRS. In our upcoming lesson, we'll deep-dive into what this form is really about, why it's essential, and how to make sense of it.
Log in Georgeson Cas 9 months agoPosted 9 months ago. Direct link to Georgeson Cas's post “So is the first box (1) s...” So is the first box (1) showing the gross income? I'm still slightly confused. • (1 vote) David Alexander 9 months agoPosted 9 months ago. Direct link to David Alexander's post “Gross income is the total...” Gross income is the total amount paid to you BEFORE taxes and other required fees (like FICA and Medicare) are deducted. So, If your job pays you $5 an hour and you work 40 hours a week, your gross pay is $200. But taxes, FICA and Medicare deductions are made. You may also pay certain amounts for required state disability insurance, city and state income taxes, and such. Let's say those take $25 per week from you. So, your GROSS income was $200, but your NET income was $175. At the end of the year, your W-2 form will report 52 weeks times $200, a gross income of $10,400. (3 votes) savanah.johnson 5 months agoPosted 5 months ago. Direct link to savanah.johnson's post “if i begin working at 16 ...” if i begin working at 16 or 17 (as is legal in my state) will i have to fill out taxes? • (1 vote) David Alexander 5 months agoPosted 5 months ago. Direct link to David Alexander's post “Yes. As soon as you have ...” Yes. As soon as you have legal income, you owe legal taxes. (1 vote) lee.keidai 2 months agoPosted 2 months ago. Direct link to lee.keidai's post “Hi! I have three question...” Hi! I have three questions: 1) How much did Olivia get to keep out of her $64,000? It seems like $1,500 went to her 401(k) --> $62,500 in comparing Box 3 and Box 1. So does she get to (immediately) take home Box 1 - Box(2 + 4 + 6 + 12d + 17 + 19) – Box 10? 2) If Box 3 is different from Box 1 because of 401(k) investments, and 12a is 401(k) investments, then why is Box 3 - Box 1 = $1,500 ≠ $4,500 = Box 12a? 3) Why are people talking about people potentially overpaying in taxes? Do people have to guess how much to send the IRS based on these W-2 forms? Or do people have to fill out certain boxes in the W-2 forms themselves? Are the taxes not automatically deducted even though it's written here on the W-2 form? Why doesn't the IRS just automatically take out the amount that they're supposed to, and we have to "guess" instead? I'm confused! ...that... might not have just been three questions lol. Thank you (: • (1 vote) David Alexander 2 months agoPosted 2 months ago. Direct link to David Alexander's post “Perhaps you need to consu...” Perhaps you need to consult a tax-return preparer, or access a "how to do your tax return" book from your local library. Ask the librarian, who can help you find the book on the shelf there. (0 votes) Alex 10 months agoPosted 10 months ago. Direct link to Alex's post “I understand most of this...” I understand most of this, but I'm not quite sure about a few things, firstly, where exactly are the Social Security and Medicare wages coming from? Secondly, in the video for this lesson, Khan was talking about how the Social Security wage included the 401K, however, 62,500 + 4,500 ≠ 64,000. Sorry about my confusion, I just really want to know. • (0 votes) David Alexander 10 months agoPosted 10 months ago. Direct link to David Alexander's post “When you earn money for h...” When you earn money for hourly work, that is "wages". When you earn money for monthly work, that is "salary." For the purposes you ask, these are the same thing. In 2023, workers pay 6.2% of any amount they earn up to $160,200 (so, if you earn the max, that's about $9933). Your employer puts in an equal amount. If you earn more than $160,200, neither you nor your employer pay any more than that. The Medicare tax on that 160,200 is 1.45% for the employee plus 1.45% for the employer. So, if you earn that 160.200 in 2023, you will be taxed an additional $2,333. Income tax on $160,200 in 2023 runs 24%, so you'll be paying an additional $38,448. Add those three numbers together, and you'll see what's left to live on. 9933 + 2333 + 38448= 50714 160,200 - 50714 = 109486 (2 votes) KERRYD 5 months agoPosted 5 months ago. Direct link to KERRYD's post “What could be a reason wh...” What could be a reason why the amount of wages in box 3 is • (0 votes) Samantha Jean-Louis 2 months agoPosted 2 months ago. Direct link to Samantha Jean-Louis's post “Do taxes affect your cred...” Do taxes affect your credit score? • (0 votes) David Alexander 2 months agoPosted 2 months ago. Direct link to David Alexander's post “If you don't pay them, th...” If you don't pay them, that will certainly affect your score. (1 vote) Kalfus 7 months agoPosted 7 months ago. Direct link to Kalfus's post “How do you figure out if ...” How do you figure out if you overpaid in taxes? I'm assuming you will have to find out the percentage of your money that was supposed to be taken away and do the math yourself. • (0 votes) David Alexander 7 months agoPosted 7 months ago. Direct link to David Alexander's post “The W-2 form will show ho...” The W-2 form will show how much you earned, and how much of that was withheld for taxes. If you overpaid, then when you file your taxes, you will be eligible for a refund. Adjust your deductions and such so less will be withheld the next year. (1 vote) keegan.gilsdorf 3 months agoPosted 3 months ago. Direct link to keegan.gilsdorf's post “Information on a W-2 can ...” Information on a W-2 can be grouped into two groups: sections (labeled a-f) and boxes (numbered 1-20). • (0 votes) Ryleigh 3 months agoPosted 3 months ago. Direct link to Ryleigh's post “Does any information chan...” Does any information change depending on whether or not I was working a work-study job for college? Like once I get my W-2 from that job, should I expect less to be filled out or look out for specifics or differences in information? • (0 votes) sherlyn.gomezcolindresa3 4 months agoPosted 4 months ago. Direct link to sherlyn.gomezcolindresa3's post “How do you figure out thi...” How do you figure out things? • (0 votes) David Alexander 4 months agoPosted 4 months ago. Direct link to David Alexander's post “You follow the instructio...” You follow the instructions. YOu can find instructions on how to figure out a W-2 form at the website of the internal revenue service. (0 votes)Want to join the conversation?
The answers to your questions are likely to be both easier and more complex than you imagine.
\[\$2{,}500\] more than the amount of wages in box 1?
What information is listed in boxes 1-20?
