The W Series Federal Tax Forms and What They Mean

When it comes to something as complex as the tax system of the United States federal government, it is difficult to know everything there is to know, and you probably never will unless you are a qualified tax expert, but one thing is for sure: knowing as much as possible about how the system works not only makes you smarter, it also helps you file your tax return in a smarter way. This is why learning about the W series of federal tax forms can help you come to an understanding of exactly what these returns mean and the purpose that they serve. If you have ever been an employee of a company then you will have had at least some exposure to the W-4 tax form. This is what you fill out when you begin working for a company so that they can withhold the proper amount from what they pay you and give it to the IRS on your behalf over the course of the year. This process of paying in helps you owe less, and maybe even earn yourself a refund, when tax time rolls around. Everyone who is employed by a company must fill this out when they begin working for that company and ideally, the proper amount of tax will be withheld on their behalf, but this is rarely the case.

The W-2, also known as a Wage and Tax Statement, is an information return which allows employers to be able to report the wages of any of their employees to the IRS and, for the FICA tax, the Social Security Administration. This particular form is required to be delivered to any employee, whether full or part time, by the 31st of January after each year that the employee works for the company. Those who work in more than one state will actually get a W-2 for each state, as well. The W-9 is another form that is fairly common and is used by those companies or individuals in business who pay others for services. The form requires the person being paid to list their name, physical address, and Social Security Number so that the person or business making the payment has a full record that they can show the IRS if they need to. The payments made that fall under a W-9 are generally reported on either a form 1099 or 1096. While the W-9 is not one of the federal tax forms that is as well known as the W-2 or W-4, it is a very important form to know about for those who do independent contracting work.

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