Employers use Form W-2 to report wage, salary and other compensation paid to employees along with federal tax withheld during the course of the tax year. Employees will then use their Form W-2 to file their federal income tax returns. It is a simple tax document but has everything you need to file your tax return if your income is only from jobs.
Perhaps the most anticipated information on Form W-2 is the federal tax withheld. Since you’re not in charge of how much tax is being withheld from your paycheck—at least to a certain degree, knowing the total amount of taxes withheld is such a big relief. This is for a number of reasons. You will finally be able to estimate your tax refund even before filing your tax return. Because you are likely to pay a similar portion of your income to Uncle Sam, you will be able to speculate how big your tax refund this year is going to be.
Where to find federal tax withheld on Form W-2?
The federal income tax withheld on Form W-2 can be located on the upper right corner. You can see where it is in the image above. This is the total amount of federal tax withheld. If you know how much you owed to the IRS last tax season, you can subtract this amount from it. Any amount that exceeds $0 should be your estimated tax refund. That is, of course, assuming your overall income and taxable income is the same as last year.
Looking for ways to increase your tax refund? Visit the homepage of our blog to see tips and guides on how you can maximize tax refunds by simply adjusting tax withholdings.