A government needs to have enough resources and there are different channels that many governments use to get revenue with taxes being the primary source of revenue for many governments. It is possible to avoid paying taxes or file returns late but because of the penalties you have the pay, it is important that you pay the taxes. There are different types of taxes that is the direct and indirect taxes, for instance, if you are employed, you are expected to be taxed from the income.
Of taxes is a long process, for example, the W-2 form is a form that is used by the Internal Revenue Service is mostly in the United State showing your wages and also the taxes that have been withheld from you from your income. An employer, therefore, is required by the government to ensure that they withhold some amount of money from your income every time they are paying the wages and they should ensure that they are recorded in the W-2 form. These forms are supposed to be filled from the starting of the end-of-the-year on which the employer is expected to mail or send the forms to the employees before the end of the year or before January 31 so that it can give the employee enough time to fill the W-2 form and also file the returns on time at is on April. The form will help you in filing your federal and state income taxes. How Does A W-2 Look?
The W-2 form contains different parts and whether it sent electrical or through a mail, you will find three copies which are identical. In each form, you find that has many boxes that need to be filled sometimes can be very stressful if you don't know what it is. Box A- F requires you to fill it with the employer's information and also your personal information such as the employer's tax ID, your full name, your current address, Social Security number, the address of your job and so on. What Does A W-2 Look Like?
Not every income you earn is taxable and that is why books 1 is supposed to indicate the amount of income you earned during the fiscal year which is taxable. The boxes from 2-6 will show you important information of the tax withheld from you from your income tax therefore, containing Medicare tax, Social Security tax, federal income tax, and state income tax.Boxes 7-10 will contain important information that is including in a special form of income such as reimbursement, income credit and so on. The box from 11 to 12 will contain deferred compensation plan information and if you don't understand that you can consult with the employer. If there are additional tax information that you need to know, it'll be contained in box 13 and 14 while box 15 to 20 will contain similar information with box two to six. Find interesting facts about tax at https://www.huffingtonpost.com/entry/jct-tax-reform-bill_us_5a00b5a3e4b0baea2633fbf5.
