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If you were an employee at any time in 2012 your employer is required by law to provide you with a W-2 form which provides very important information regarding the salary, payroll taxes paid, and your employee benefits. Beginning in 2012 there is a new code “DD” in Block #12. Your employer is now required to report the cost of employer sponsored health care programs. However, the amount which is reported is not taxable income to you. If the payroll and employment information in your tax return does not agree with the IRS records, your tax return could be rejected and/or your income tax refund placed on hold, if you are entitled to a tax refund. There are procedures to follow if you are missing one or more of your W-2 forms.Â
Your employer submits all W-2 reports to the Social Security Administration annually. This information is shared by both Federal agencies. Since the W-2 was required to be submitted by January 31st, the Internal Revenue Service will already have this information in their files when you electronically file your tax return. (more…)