It's the little things that inspire me. For those who don't know the difference between a W-2, a W-4, and a W-9 here goes:
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A W-2 is a year-end payroll form you receive, which needs to be filed with your personal
tax return. It represents the wages you earned as an employee during a calendar year, the taxes withheld, and any other deductions. Yes, the government knows about it, they get one too! Yes, you have to provide the same amount on your tax return. No, do not try to test the IRS by excluding it from your personal tax return. No, it is not a negotiable document. - A W-4 is a form you complete as an employee for your payroll department so the correct amount of federal tax can be withheld from your paycheck each pay period. You do this by identifying the number of dependents you have and declaring your marital status. No, you can't deduct your pet as a child to lower your withholding. Yes, it will catch up with you on April 15. No, it's not wise to complete the form in crayon.
- A W-9 is a form provided to a company who will pay you an amount, generally speaking, when you are not an employee. It is necessary when you are a "contractor" to a business. You must provide your social security number if you are providing services as an individual, or a Federal ID number if you are a business providing those services. It essentially tells the company that they do not need to withhold taxes on the amount they will be paying you. No, you can't be an employee and a contractor at the same time to the same company. No, you can't make-up the taxpayer ID number. Yes, you have to sign the form. No, you do not get a W-2 at year-end, you get a Form 1099. Yes, yet again, the government knows about it, they get a copy of your 1099 at year-end too!
Hope that helps clarify it. As always, if you have any questions I recommend you go to www.irs.gov to seek specific clarification regarding your situation as this was not meant to be a complete and fully inclusive discussion.
If you are over the age of 35 and found this helpful, we need to speak.