How to read w2 gross income

You'll find Social Security and Medicare tax withholding in Boxes 4 and 6, but most taxpayers don't have to do anything with those figures on their federal tax returns. Skip to content.

How to Calculate Total Salary From a W-2

See also: Want more taxgirl goodness? With a unified platform and a team of tax compliance experts in your corner, we can help make payroll and tax errors a thing of the past. To arrive at your total salary using Box 1, add your federal taxable wages shown in that box to your nontaxable wages plus your pretax deductions that are exempt from federal income tax.

Your gross income stated in Box 1 of your W-2 is essential in filing your taxes, as it shows your wages subject to federal income tax.

This amount is determined by the elections on your form W-4 based on exemptions and any additional withholding.

How To Calculate W-2 Wages From Pay Stub?

Here, you'll see all kinds of codes. Box 16: Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. It was a horrible experience. This amount is not taxable.

how to read w2 gross income

If applicable, you may use the taxable wages shown in either of those boxes to calculate your total salary. Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007.

how to read w2 gross income

Let's take a closer look at your W-2 and the key box-by-box numbers that you should focus on the most in preparing your taxes. Software programs ask the preparer to input the amount that matches each box on the W-2.

how to read w2 gross income

You may ask your payroll department for a printout of your nontaxable wages and pretax contributions for the year and the taxes they are exempt from.

Brought to you by Sapling. Box 2: APS helps organizations of all sizes and industries with their payroll processing and tax compliance needs. You should have received your form W-2 - with all of this information properly reported - by January 31, 2018. The importance of the difference in the W-2 wages reported and the gross pay is that employees do not get to claim a deduction for the pretax expenses on their income tax return.

Knowing how to calculate your W-2 wages can help you to know your total salary and taxable income.

W-2 Forms: Understanding Your Most Important Tax Document

Pin It on Pinterest. You do have to pay Social Security and Medicare taxes on amounts you contribute to a 401 k plan. A control number is an internal number used by your employer or your employer's payroll department. More Articles You'll Love.