What is the Difference Between W 2 form and W 4 form?Last Revised on December 19, 2009
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Both W-2 and W-4 forms are tax forms issued by your employer or company you work for per se. You can easily obtain a copy of both of these from your job if you lost or need them for any reason. Both of these has to do with state and federal taxes. So what’s the difference between the the w-2 and w-4 form?
W 4 form is the kind that your employer gives to fill out when you first got hired there. In that form, you fill out how much money you want to keep or in other words the employee withholding allowances, how many dependents you have or want to include under your name – they could be your kids and spouse. W-4 form affects your income because the information you provide in there will reflect the deduction or no deduction from your pay check. It is recommended that you consider completing a new form W-4 each year and when your personal or financial situation changes.You can change any information you added into this any time; just notify your boss and he or she will help reflect those changes in your next pay stub.
Now w-2 form is bit different, although it too is provided by your work place. Your work place company sends you and the Internal Revenue Service (IRS) authorities this form through mail at the end of the year, usually at the beginning of January. This w 2 form is prefilled with information about the total amount of money you made, that is both gross and net wages or salaries of that fiscal year, number of dependents you claimed, state and federal taxes you paid, social security and medicare, etc. You keep this form for yourself because it contains information that you need when filing the tax return. IRS has all the same information but they still want you to include them when doing taxes; it could be because they don’t have enough resource such as workers and technology to go through ever single taxpayer in the United States.
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