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Current time:0:00Total duration:8:56

Video transcript

so let's talk a little bit about w-2 forms which are super important forms when you are filling out your taxes and to get a sense of what filling out your taxes are even about let's just draw a little bit of a timeline and I'll draw it right here on the w-2 form so let's say that is year 1 so year 1 and then of course we go into year 2 year 2 and let's say you are working at a BC employer for part of this year so you are working for them maybe full year maybe part of the year so in the next year you're going to have to fill out your taxes and filling out your taxes I'm necessarily paying your taxes you might have been paying your taxes all year your employer with every paycheck it would would have probably been withholding some of your income for federal income tax state income tax Social Security taxes Medicare taxes and then when you fill out your taxes by the April 15th deadline so this is the 4:15 deadline you could get your taxes done by that date that's when you true it up if you were paying too much based on your particular circumstances during the year then you will get a refund if you paid too little based on your particular circumstances then you're going to have to pay you're going to true it up by that you're going to crew it up by that date and to help you account for this and to help you account for how much you got paid and how much of your income was withheld for these different reasons your employer issues you issues UAW issues you a w-2 form and it sends one w-2 form one w-2 form goes to you and then one w-2 form will go to the IRS so just so that it knows what happened in that year as well and any employer you work for and that year one needs to get you that w-2 form by January 31 by January 31 of the next year so that you have so that you have it there to actually get your taxes done by April 15th and if you have more than one employer you're going to need to have your patient you should get one w-2 form for each employer so now let's just look at what this form is telling us so some of this might be a little self-explanatory you have your social security number this is how the IRS keeps track of you you have your employer identification number this is the IRS keeps track of your employer and then you have just the general information the name and address of your employer your name and address and then you have all the information about well what is your what were your taxable wages and tips and compensation and then how much taxes were actually withheld so we see here in in in in box one wages tips and other compensation so this is your taxable wages tips and other compensation use to calculate your federal income tax so this is essentially what the number that was kind of input to think about how much was withheld and then this was the actual number that was withheld then we go to box number three social security wages and you might say well you know why is this number different than that number well and but they are close and the reason is Social Security wages may include some things that or may not include some things that are included in your federal taxable wages so for example in this case any employee actually gave $1,000 to their 401k program that is on a pre-tax basis so they don't have to pay taxes on it from a federal income tax point of view but they do have but it is used to calculate your social security tax so they added that back in it's instead of thirty-nine thousand it's forty thousand is what's used to calculate the Social Security tax and that actual tax withheld is right over here two thousand four hundred and eighty dollars similarly I always have trouble saying that word right over here we have your Medicare wages and tips even to a why they just listen again it looks like the same number well sometimes it'll be the same number but sometimes it won't be the same number so for example Social Security caps out after a certain point and so that's actually another reason why there could be a reality where your wages and tips up here and the other competition might be higher than your Social Security wages if you make a relatively high income but Medicare wages and tips don't cap out so these numbers actually might be different depending on the circumstance but this is the number that's that was used to help to think about how much Medicare tax was withheld and once again the withholding whether the withholding in general especially when you're talking about the federal income tax withholding this is based on things you've filled out and they double you for forum which we'll talk about in more detail in another video but it's based primarily on are you single or married whatever and then how many dependents do you have now as you go into these other boxes you go into the parts that you know it might be empty and or they might be filled in depending on your particular circumstances but they're not as consistently filled in as these top six boxes right over here so box number seven these are your social security tips these are the tips that are that that you that you reported to your employer that are susceptible to Social Security tax and you might notice over here in box three they only say Social Security wages not wages and tips like we have in box five and box one and so that is actually separated out right over there box number eight allocated tips this is the IRS s way of keeping track that at least a reasonable amount of tip income is reported this is tips allocated by an employer and I won't go into it it gets quite complicated but it's a percentage of if they are a restaurant or a bar a place where people are likely to get tips they allocate a percentage based on the revenue a certain percentage of that to employees and you can almost view them as what was likely going to be the tips and this actually can get into a fairly complicated discussion the big takeaway up it is is if you are getting tips it's good to keep track of it yourself and it's good to report it to your employer now as we go into these other boxes box number nine I won't go once again into the details of it but as of the time of this video was made as you can tell it was made in 2014 this box was no longer used and so that's why it's grayed out and then as we go down once again these are ones these are many many boxes that don't always get filled out dependent care benefits these might be well they are what they say if you've got some type of benefit that help with child care or some type of schooling that would be listed over here non-qualified plans these are things like deferred compensation plans they they often apply to kind of higher level executives but they're just there just to list them just so that they can be broken out now this section over here there's a bunch of different codes you can see and I'm not going to go into each of those codes that actually actually each of those codes could probably be their own video and if I did them all together there's a whole set of them the listing of if you've made contributions to say things like a 401k plan and in this example the code D is actually talking about hey a thousand a $1,000 contribution was made to a 401k plan we've already seen that's what accounts for the discrepancy between boxes 1 & 3 or between boxes 1 & 5 and obviously you can list multiple of these now 13 these are just checkboxes to see if certain things happened if you were a statutory employee once again I'm not going to go into detail on that that can get a little bit involved a retirement plan that clearly happened here we just talked about that third party sick pay that's maybe your employer had an insurance plan for for-4 so sick pay and so you received from the insurer as opposed to from your employer box 14 other it is what it says it's a space for the your employer to kind of list other types of odds and ends that might have been relevant to you and then after that we start breaking into the stoat state and local wages and taxes so you see over here in box 15 you can list the you can list the state or States you can up to 2 right over here that you might have worked in in that year even for this one employer maybe you moved for that same employer and in that in that same year and you can list the name of the state but also the state ID number which is how the how the IRS keeps track of the states and it's really just keeping the information to be a little bit redundant so in case there's a mistake people can still keep track of things then if you're in a state with state income taxes or well you would be doing this if you're in a state with state income if you're in a state with state income taxes you would list your wages tips and compensation that is that are susceptible to state income taxes here and then you would say well what was actually with hell then 18 and 19 and 20 if you are in a city that also collects income tax place like New York City and there's others that's what you list over here the wages are susceptible to it how much you paid and the actual locality name
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