A lot of people never start their tax process unless they get their W2. To prepare your tax return you must have your W2 form. It is important to know how to find your simple W2 using your paystub. The reason why people get mixed up is because they do not know the difference between a paystub and W2. If you lack the information about these two your final paystub does not match your W2. For you to prevent these confusion it is good to know and understand the difference.
Make sure you know the difference between a paystub, final paystub and a W2. A paystub is that pay check you get from your boss anytime you get your salary. It includes your pay details, and the whole year to date payroll. The paystub has your deductions and also taxes that have been removed out of your total earnings. The paystub has details of your net earnings and your pay check money. The last paystub given by the end of the year is the final paystub. The gross and net income are included in the final paystub. A W2 is just a tax form that gives a list of all the amount of taxes that has been withheld from your pay check the whole of that year. It has the federal, state and income taxes and filling of the tax return too.
A W2 has the amount of taxes that have been taken from your pay check and it must show the net income you have made for a whole year. It is good to train yourself on how to calculate your W2 from one of your paystub instead of waiting for it. It will not give you the same information as the one in the W2 form but it has all the details you need to figure out your overall net income by yourself. View more details on How To Calculate W-2 Wages From A Paystub now!
Here is a simple procedure on how to calculate your W2. Before doing any step make sure you calculate your gross income. This is the first step because you find the total amount of money you have earned without deductions or any tax holdings. For most people they multiply an hourly rate by a certain number of hours a week. The second step in finding your W2 is to subtract your non-taxable wages. Income taxes, federal and state free wages are the ones known as non-taxable. They include things like gifts, partnership income or insurance. Add all of them taxable wages then subtract from gross income. Account for other deductions by subtracting from the number you got in step two. Determine your whole year taxes then calculate your W2earnings. See more ideas on how to get w2 from pay stub.
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