Put Your W-2 To Work For You WhenFiling Taxes (NAPSA)—Your W-2 form is more important than you realize. Both your income tax and Social Security benefits are based on the information contained on Form W2, Wage and Tax Statement. Reviewing the form carefully when you get it from your employer can save you time and money. The American Payroll Association—a leader in payroll education—offers these tips on how to put your W-2 to work at tax time: 1. Expect a W-2 from every company that paid you in 2006. Contact each payroll department that has not sent a W-2 by mid-February. Have your full name, Social Security number (SSN), employee number and address—especially if you have moved—ready. 2. Make sure your name and SSN match your Social Security card. Ask your payroll department for a corrected W-2 if your name and/or SSN do not match. The names and numbers must match for you to receive your Social Security benefits. 3. Obtain another W-2 if you misplace your original. Request a “reissued statement” to replace a lost W-2. A fee may be charged. 4. Check your W-2 against your last 2006 pay stub. If a figure on your W-2 seems incorrect, contact your payroll department. The amounts entered in W-2 Boxes 1, 3 and 5 maydiffer from the yearto-date gross pay on your final 2006 pay stub. Box 1 will differ if you have deductions for an employer-sponsored savings plan, such as a 401(k) retirement plan. Boxes 1, 3 and 5 will be lower if you utilize pretax deductions, such as health insurance, dependent care spending accounts, etc. Check your W-2 form against your last 2006 pay stub.If a figure on your W-2 seemsincorrect, contact your payroll department. Box 3 should not exceed $94,200—the 2006 Social Security wage base. 5. Check whether you qualify for tax credits. Read the back of W-2 Copies B, C and 2 to determine if you are eligible for the Earned Income Tax Credit and an explanation of the W-2 boxes. 6. Expect separate tax forms for 2006 freelance work. If you earned more then $600 in 2006 for contract work from any company, expect a Form 1099-MISC, Miscellaneous Income. 7. It’s your money; keep more of it. A big tax refund, getting married or having children in the past year are all signals that it may be time to adjust the withholding on your W-4. Making just a minor adjustment may give you more money each payday. The W-4 calculator at www.nationalpayrollweek.com can help you determine the proper withholding allowances for Form W-4. For more information, visit www.nationalpayrollweek.com.
