Ensure Accurate Taxes and Avoid Penalties With Five W-2 Tips From the American Payroll Association

SAN ANTONIO, Jan. 27, 2023 /PRNewswire/ -- The 2022 Form W-2, Wage and Tax Statement, is due to all employees by January 31. This year's form, used by employees to complete their income taxes, will be important for employees to determine next year's tax responsibility.  

The American Payroll Association, the nation's leader in payroll education, has five things you should know about your Form W-2 this tax season.

1.Compare Your W-2 to Your Final 2022 Paystub.

Items to review on the W-2:

A. Box 1 will differ from your final 2022 paystub year-to-date gross pay if you participated in a 401(k) or other employer-sponsored savings plan.

B. The Box 3 total should not exceed $147,000 – the 2022 social security wage base.

C. Boxes 1, 3, and 5 will be different from your final 2022 paystub year-to-date gross pay if you used pre-tax dollars to pay for qualified insurance premiums, transit benefits, or contributions to flexible spending accounts.

2. Obtain All Form W-2s. You must receive a Form W-2 from every employer you worked for in 2022. If you haven't received your W-2 by February 5, contact the company's payroll department to request a
"reissued statement."

3. Ensure Your Social Security Number (SSN) Matches Your Social Security Card. Double check the social security number on your W-2 matches your social security card. If not, call your employer's payroll department to send a corrected W-2.

4. Check for Tax Credits. Depending on your eligibility, you may qualify to receive thousands of dollars from the Earned Income Tax Credit. Read the back of the W-2 copy B to determine your eligibility.

5. Don't Overpay Your Taxes. Once you use your Form W-2 to complete your 2022 tax return, if your refund is larger than expected, you can fill out a new Form W-4, Employee's Withholding Certificate. Adjusting your W-4 can result in fewer taxes taken from each paycheck, giving you an instant raise. Complete a "paycheck checkup" using the IRS's Tax Withholding Estimator to determine if you're overpaying your taxes. If you have a more complex tax situation you may need to use IRS Publication 505, Tax Withholding and Estimated Tax.

If you have any questions regarding your Form W-2 contact your payroll department. For more information, visit APA online at www.americanpayroll.org.

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SOURCE The American Payroll Association