If seeing a robin means spring has sprung, then the arrival of your W-2 (officially Form W-2, Wage and Tax Statement) signals the beginning of tax-filing season.
Check it over
The information on your W-2 also goes to the Social Security Administration, so you might want to make sure your name and Social Security number are correct and the amounts in the various boxes match those on your year-end paystub(s).
Speaking of boxes, there are several types of compensation and benefits reported in Box 12 (check the back of your W-2 for a list of codes). If you see an amount coded DD, it represents the cost of employer-sponsored health care (if provided). Not all employers are required to provide this information at this point, but if there is a dollar amount, don’t worry. It’s for your information only and it is not taxable.
Keep or pitch?
The IRS recommends keeping W-2s for three years after the deadline for filing the related income-tax return. However, you might want to hang on to them significantly longer — in case of a dispute with Social Security over your work record or wages.
To learn more about tax rules and regulations, give us a call today. Our knowledgeable and trained staff is here to help.