Increase Your Paycheck, Reduce Taxes With Your W-2 (NAPSA)—Thekey to a bigger paycheck is Form W-2, the tax form you get from your employer in January. The American Payroll Association, a leader in payroll education, offers these W-2 tips to save you time, money and headaches during tax season: A. Is your W-2 correct? Check it against your final 2008 pay stub. If any figure on your W-2 seems incorrect, contact your pay- roll department. Things to watch include: *Box 1 should differ from your final 2008 pay stub year-to-date gross pay if you participate in a 401(k) or other employer-sponsored savings plan. *Box 3 total should not exceed $102,000—the 2008 Social Security wage base. *Boxes 1, 3 and 5 should be less than your final 2008 pay stub year-to-date gross pay if you use pretax deductions like medical and dependent care spending accounts. B. Did you get everything you need for accurate taxes? You should receive a W-2 from every company that paid you in 2008. Contact payroll in any company you worked for in 2008. Have your full name, Social Security number (SSN), employee number, and address—especially if you have moved—ready. Request a “reissued statement” to replace any lost W-2s. If you earned more than $600 from a single company for any freelance work, you should receive Form 1099-MISC, Miscellaneous Income instead of a W-2. C. Does your SSN match your Social Security card? The name and SSN on your Both your income tax and Social Security benefits for 2008 are based on the Form W-2, Wage and Tax Statement. W-2 must match your Social Security card to receive your Social Security benefits. Ask the payroll department for a corrected W-2 if they do not match. D. Are you eligible for any tax credits? Read the back of your W-2 copies B, C and 2 to determineif you areeligible for any tax credits. You could be missing out on hundreds or thousands of dollars in tax credits. E. Can you increase your paycheck? If you get a big tax refund each year, it means you are overpaying your taxes—the average person overpaid by $200 a month in 2008! Making just a minor adjustment to your W-4 form could give you more moneyeach payday. The W-4 assistant at www.nationalpayrollweek.com/W4 can help you determine the proper withholding allowances to claim on Form W-4. For additional tips to help you get more from your paycheck,visit www.nationalpayrollweek.com.
