You can always have your tax return from the paystub hence you don't have to wait for the W2 form. Therefore, it means that you will not have to wait long for your W2 form so as to get your tax return since the information that you will have in your W2 is the same one you will get in your paystubs. It is, therefore, important to make sure that the information that you will have in the pay stub will be the same as that of the W2 by knowing how the calculations are done. Here are the steps of calculating W2 from a paystub.
The first thing that you will have to do is to get the gross income. Gross income will always be that amount that you will earn without subtracting anything. You have to make sure that you will not exclude any amount you have to include everything. When you do this it will show you exactly all the amount that you will have earned including all the extra earnings of which will be shown on your paystub.
The second step is to deduct all the non-taxable wages from the gross income above. Since we will have to get the gross income, you will now have to deduct all the non-taxable wages from that amount. There are those wages that do not include the income, federal or the state taxes and those are the non-taxable wages. To make sure that you will have the correct amount you have to make sure that you do include all the of the non-taxable wages. Click here for more ideas on how To Calculate W-2 Wages From A Paystub.
The other thing that you will have to get is the taxable income which you will get by accounting for all the deductions. You are guaranteed to get the correct amount if you do include all the other deductions that are there. You will get help from the paystub so as to get the sum of all the other deductions so that you now deduct from the amount that you got in step two. After the subtraction you will get the taxable income of which will always match the amount that should have been in the W2 form.
You will then have to get the annual taxes and then calculate the W2 earnings. We have that specific amount of taxes that will be withheld every year. To get the amount that has been withheld you will have to multiply the taxes withheld every month by the number of times that you get paid every year. To finally calculate the W2 you will have to subtract the amount withheld with the amount you got in step three. Get more info about How To Calculate W-2 Wages From A Paystub.
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