Tax Form W-2: Common Mistakes & Exemptions
Filing the IRS W-2 form can be a daunting task. It requires a good understanding of the applicable tax laws and a meticulous approach to record-keeping. Fortunately, some exemptions allow some taxpayers not to file the W-2 form at all. Here is a comprehensive list of exemptions that can be applied when filing your taxes:
- An individual already exempt from filing taxes with the Internal Revenue Service (IRS) is not required to file the W-2 form. This may apply to taxpayers whose income is below the minimum filing requirement.
- Individuals who are not required to pay Social Security and Medicare taxes and are not subject to the Federal Insurance Contributions Act (FICA) may not need to file the W-2 form. This may apply to some self-employed individuals.
- A person who has no income and does not receive any wages from an employer is exempt from filing the Wage and Tax Statement.
- An individual who is not a U.S. citizen and does not reside in the United States is not required to file the W-2 form.
- An individual who does not have any wages or compensation from an employer is exempt from filing the tax document.
When filing the W-2 form, it is important to be aware of people's common mistakes. Here is a list of the most common mistakes people make while completing the form:
- Failing to report all income earned, including wages, tips, bonuses, and other types of compensation.
- Not correctly entering employer information, such as the employer’s name, address, and federal Employer Identification Number (EIN).
- Enter incorrect information for Social Security numbers, names, or addresses.
- Failing to include all employer contributions to the employee’s benefits and retirement plans.
- Not distinguishing between wages earned from different employers.
- Not correctly calculating the amount of taxes withheld from wages.
- Not filing the Wage and Tax Statement form on time.
If you are unsure about filing the W-2 form, it is best to seek professional help from a tax adviser or accountant. It is important to take the necessary steps to ensure that the form is filed accurately and on time. Filing the W-2 form correctly can save you time and money in the long run.