W7 Form Box 17
With tax division in abounding swing, you apparently accept a cardinal of tax forms either in duke on on the way. If you’re an employee, one of those forms is the anatomy W-2, Allowance and Tax Statement. No bulk whether you’re self-preparing your tax acknowledgment or accepting your acknowledgment able professionally, you should accept a basal compassionate of what the anatomy says and how it affects your basal line. Here’s what you need to know:
A anatomy W-2 (blank anatomy downloads as a pdf) is issued by an employer to an employee. An employer has assertive reporting, denial and allowance requirements for advisers that are a bit altered from those owed to an absolute contractor.
The beginning for arising a anatomy W-2 is based on dollars. Not time worked. Not position held. Just dollars earned. The abracadabra cardinal is $600. Every employer who pays at atomic $600 in banknote or banknote equivalent, including taxable allowances to an agent charge affair a anatomy W-2. If any taxes are withheld, including those for Social Aegis or Medicare, a anatomy W-2 charge be issued behindhand of how abundant was paid out to an employee. If you were paid beneath than $600 and still accustomed a anatomy W-2, don’t panic: Sometimes, an employer will affair a anatomy W-2 to all advisers because it’s easier for them.
An employer prepares six copies of anniversary anatomy W-2 per employee. Yes, that’s a lot of paperwork. If, as the employee, you don’t appetite to accept cardboard copies and your employer has an adapted arrangement in place, you can opt to accept your forms electronically. To do this, you charge accurately consent; your employer may not accelerate a anatomy W-2 electronically to any agent who doesn’t accord or who has revoked consent.
As an employee, you get three copies:
The larboard ancillary of the anatomy is for advertisement aborigine information:
Box a. Your Social Aegis Cardinal (SSN) is arise in box (a). You should consistently double-check this to accomplish abiding it’s correct. If it’s not correct, you charge to appeal a new anatomy W-2 from your employer (that adapted anatomy is alleged a W-2c). An absurdity could apathetic the processing of your return. Keep in apperception that your absolute Social Aegis Cardinal should arise in this box: while the Regs acquiesce for truncation of numbers on assertive forms, it’s not acceptable on your anatomy W-2.
Box b. Your employer’s EIN is arise in box (b). An EIN is the employer’s agnate of your SSN.
Box c. Your employer’s abode is arise in box (c). This is the acknowledged abode of your employer which may or may not be area you absolutely work. Don’t let that bandy you.
Box d. A ascendancy cardinal is an centralized cardinal acclimated by your employer or your employer’s bulk department. If your employer doesn’t use ascendancy numbers, it’s not a big deal: Box (d) will artlessly be blank.
Boxes e and f. These arise as one big block on your anatomy W-2. Your abounding name is arise in box (e). It’s declared to reflect the name that’s absolutely on your Social Aegis agenda (the SSA isn’t crazy about suffixes, alike if you use them, so you shouldn’t see one on your anatomy W-2 unless it’s on your Social Aegis card). If your name isn’t absolutely as it appears on your Social Aegis card, you may charge a new anatomy W-2; ask your employer if you’re not abiding (if you charge to accomplish a change with SSA, find out how here). Your abode is arise at box (f) and should reflect your commitment address, which could be a column appointment box, and is acceptable after punctuation (a USPS preference). If your abode on the anatomy W-2 isn’t correct, acquaint your employer: You won’t charge a new anatomy W-2, but your employer needs to amend his or her records.
The appropriate ancillary of the anatomy is acclimated to abode dollars and codes:
Box 1 shows your absolute taxable wages, tips, prizes and added compensation, as able-bodied as any taxable binding benefits. It does not accommodate constituent deferrals to retirement plans, pretax allowances or bulk deductions. Back the bulk doesn’t accommodate those amounts, it’s not abnormal for this bulk – like the one in my archetype – to be beneath than the amounts included in boxes 2 and 3. This tends to be the cardinal best taxpayers affliction about the most.
Box 2 letters the absolute bulk of federal assets taxes withheld from your pay during the year. This bulk is bent by the elections on your anatomy W-4 based on exemptions and any added withholding. If you acquisition that this cardinal is too low or too high, you’ll appetite to accomplish an acclimation to your denial in 2018 (keep in apperception that those numbers may change due to tax reform).
Box 3 shows your absolute accomplishment accountable to the Social Aegis tax. This bulk is affected afore any bulk deductions which agency that the bulk in box 3 could be college than the cardinal arise in box 1, as in my example. It could additionally be beneath than the bulk in box 1, if you’re a high-wage earner, back the absolute of boxes 3 and 7 (see below) cannot beat the best Social Aegis allowance base. For 2017, that bulk was $127,200. If you accept added than one job, for Social Aegis tax purposes, the cap still applies.
Box 4 shows the absolute of Social Aegis taxes withheld for the year. Clashing federal assets taxes, Social Aegis taxes are affected based on a collapsed rate. The bulk is 6.2%. The bulk in Box 4 should, then, be according to the bulk in box 3 times 6.2%. Back you should not accept added Social Aegis denial than the best allowance abject times 6.2%, the bulk in box 4 should not beat $7,347.00. In my example, the bulk is $50,000 x .062, or $3,100.00.
Box 5 indicates accomplishment accountable to Medicare taxes. Medicare taxes about do not accommodate any pretax deductions and will accommodate best taxable benefits. That, accumulated with the actuality that clashing Social Aegis wages, there is no cap for Medicare taxes, agency that the bulk in box 5 may be beyond than the amounts apparent in box 1 or box 3. In fact, it’s acceptable the better cardinal on your anatomy W-2.
Box 6 shows the bulk of Medicare taxes withheld for the year. Like Social Aegis taxes, Medicare taxes are ample based on a collapsed rate. The bulk is 1.45%. For best taxpayers, this agency that the bulk in box 6 is according to the bulk in box 5 times 1.45% (as in my archetype back $50,000 x 1.45% = $725). Your employer charge additionally abstain added Medicare tax of .9% from accomplishment paid to an alone earning added than $200,000, behindhand of filing cachet or accomplishment paid by addition employer. Back your employer doesn’t apperceive your absolute banking picture, it’s accessible that you may accept to pay added added Medicare taxes than your denial depending on filing status, advantage and self-employment income.
Tips which were arise to your employer will be begin in box 7. If this box is blank, it agency that you did not abode tips to your employer (unreported tips are still taxable).
Allocated tips arise in box 8 are those that your employer has attributed to you. Those tips are advised assets to you. For added on tip income, bang here.
Box 9 is almost new. You may see a 16-digit analysis cipher here. It’s part of a growing aegis action to abetment the IRS with acceptance that the anatomy is authentic. If your anatomy W-2 contains this code, you or your tax able should enter it back prompted application software (electronically filed allotment only). If the cipher is not on your form, don’t worry: your tax acknowledgment will still be accepted.
At box 10, your employer will abode the absolute allowances paid on your account beneath a abased affliction abetment program, including those greater than the $5,000 exclusion (if the bulk exceeds $5,000, that balance will be arise in boxes 1, 3 and 5). Amounts which are beneath than $5,000 and are paid beneath a able plan are advised non-taxable benefits.
Box 11 is acclimated to abode amounts broadcast to you from your employer’s non-qualified deferred advantage plan (this bulk is taxable). Don’t abash this with amounts contributed by you. That shows up in box 12.
Box 12 is the kitchen bore of anatomy W-2 reporting. Here, you’ll see all kinds of codes. Not all of the assets coded at box 12 is taxable. Here’s a quick briefing of the codes (if you accept agitation account them, bang here):
In my archetype anatomy W-2, I’ve included three of the best accepted codes.
If you participate in an constituent cessation affairs like a 401k plan, you’ll see it arise application Cipher D. As explained earlier, these amounts will about be included in box 3 and box 5, too, alike if they are afar from accomplishment at box 1.
The bulk of employer-sponsored bloom advantage (or bloom allowance paid for by your employer) is arise application Cipher DD. This bulk is reportable beneath the Affordable Affliction Act, sometimes referred to as Obamacare, but it is not taxable to you. In best cases, this is alone your above medical benefit: abstracted dental or eyes plan advertisement is optional. Additionally optional? Bloom Reimbursement Arrangement (HRA) contributions. You will not see amounts paid into a Bloom Flexible Spending Arrangement (FSA) adjourned with pre-tax dollars; Bloom Savings Arrangement (HSA) contributions from you or your employer; or Archer Medical Savings Account (Archer MSA) contributions from you or your employer back those are not reportable.
Excludable affective costs are arise application Cipher P. This is an archetype of allowances which are arise by your employer but are not taxable to you. If reimbursements are non-qualified, they will be arise as assets to you in boxes 1, 3, and 5.
Box 13 absolutely isn’t one box: it’s a alternation of three boxes. Your employer will analysis the applicative box if you are a approved agent (employees whose balance are accountable to Social Aegis and Medicare taxes but not federal assets tax withholding); if you alternate in your employer’s retirement plan during the year; or if you accustomed ailing pay beneath your employer’s third-party allowance policy.
Box 14 is a “catch all” box. Your employer letters annihilation actuality that doesn’t fit anywhere else. Examples accommodate accompaniment affliction allowance taxes withheld, abutment dues, bloom allowance premiums deducted and nontaxable income. If you can’t bulk out the amounts in this box, analysis with your bulk or animal assets (HR) department: in best cases, the IRS will not be able to adapt these for you.
Finally, your accompaniment and bounded tax advertisement can be begin at the actual basal of the anatomy W-2:
Box 15 is aboveboard and includes your employer’s accompaniment and accompaniment tax identification number. If you assignment in a accompaniment after a advertisement requirement, this box (along with boxes 16 and 17) will be blank. If you had assorted withholdings in a cardinal of states, added than one box will be filled.
If you are accountable to accompaniment taxes, box 16 will announce the absolute bulk of taxable accomplishment for accompaniment tax purposes.
If you accept accomplishment arise in box 16, box 17 will appearance the absolute bulk of accompaniment assets taxes withheld during the year. If you alive in a accompaniment that has a collapsed accompaniment tax (like PA), you can bifold analysis to accomplish abiding that your denial is actual by adding the bulk in box 16 by the collapsed tax rate.
If you are accountable to local, city, or added accompaniment assets taxes, those will be arise in box 18. If you accept accomplishment accountable to denial in added than two states or localities, your employer will accouter an added anatomy W-2.
If you accept accomplishment in box 18 accountable to local, city, or added accompaniment assets taxes, any bulk of denial will be arise at box 19.
Box 20 is absolutely what you’d expect: the name of the local, city, or added accompaniment tax actuality arise at box 19.
You should accept accustomed your anatomy W-2 – with all of this advice appropriately arise – by January 31, 2018. If you don’t accept your anatomy W-2 yet, analysis out this article for your abutting steps.
W7 Form Box 17 – w2 form box 12
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