When preparing taxes, it is important for anything listed as income in the W-2 or other forms to be reported to the government.
Minneapolis, MN – For many people who are filing taxes, information about their income from their primary full time job is the most important. This helps the person determine most or all of their taxable income, and there are other pieces of information that can be useful when filing taxes.
Lawyers can be asked questions about the tax consequences of a person’s wages, deductions, and other matters. Those who are uncertain about issues related to their tax status should always get professional advice before filing.
What is the W-2 form?
The W-2 is a document that gives workers a summary of their total wages for the year and other related information. Each employer is required by law to give this to workers who are considered regular employees annually. When it comes time to file taxes, this form is used to review how much total tax was withheld from the person’s paychecks, and they can also quickly find their total annual income. If a person receives a W-2, it also means that the employer has been making deductions from their check for taxes, and the IRS also has a copy of the same document to determine how much tax the person owes. Minneapolis tax lawyers and other tax professionals can provide assistance to anyone who is filing taxes based on the information in their W-2.
The W-2 and the IRS
Because the IRS has the same information that is contained in the W-2 and other income forms a person receives such as 1099s, this makes it more difficult for someone to dodge their tax obligations. When preparing taxes, it is important for anything listed as income in the W-2 or other forms to be reported to the government. When it seems that the reported income is much lower than what the person has in their corresponding forms that were sent to the IRS, there can be an audit or other consequences such as late fees and penalties if the individual needs to pay more at a later time. Minnesota tax lawyers often assist people with audits and those who are under investigation from the IRS.
How does the employer know how much tax to withhold?
Tax Lawyers can provide advice to those who have questions about withholding and related matters. The employer will give a person a W-4 to fill out when they are hired which asks about things like the number of dependents and marital status, which determines their tax withholding as well.
Other uses of income information
Estate planning lawyers may be able to help people who want to use information about their income in other ways. These numbers can be used as future estimates to help determine how to set up investments, trusts, wills, and other documents related to a person’s estate.
More help is available
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