Are you confused on what a W-4 form is? How about a W-2?
You’re not alone.
The truth is, most of us don’t look at these complicated IRS forms on a daily basis, so when we do, we’re pretty lost! However, it’s important to know the difference between a W-4 and W-2 as both impact how much tax is taken from your paycheck and how big your refund may be when you file your taxes.
When do I need to look at these IRS forms?
W-4: You’ll receive a blank W-4 when you start a new job. As a new employee, you’ll be required to fill out this form.
W-2: Each year, at the end of January, you’ll receive a W-2 from each of your employers. You’ll refer to this form when preparing your tax return. Continue reading “W-2 or W-4 Form: How Do They Affect My Taxes?”