You are required to submit your tax returns annually, and you need info from your W-2 form to make the tax return. If you do not have your W-2 yet, you can get the same information that will be on your W-2 from one of your pay stubs. Your pay stub is the paycheck that you receive from your employer every time you get paid. Among the details found in your paystub include how much you have and for a particular pay period and the year to date payroll, the deductions and taxes that have been taken out of your total earnings, and your net earnings. The final paystub is the last paystub that you will get at the end of the year, which will show the gross and net income that you made throughout that year. A W-2 form is a tax form which lists the total amount of taxes that have been deducted from your paycheck during that year. Get to find out how you can calculate W-2 wages from a paystub herein.
Finding your gross income will be the first step that you take. The gross income is the total amount of money that you will have and without deductions and taxes. The paystub booths show this amount, which for a large number of people will be the product of the hourly rate and the number of hours that one works in a week. There will also be an inclusion of extra overtime hours, commissions, and bonuses.
After this, you will need to subtract nontaxable wages out of the gross income. The nontaxable wages will be comprised of the wages you received that you do not have any state, federal, or income taxes. Among the nontaxable wages may include gifts, employer insurance, disability wages, and partnership income.
Next, you will need to account for other deductions. Among the things that will be in this category include life insurance, health insurance, transportation programs, employer benefits, and retirement accounts among others. The sum of these deductions will be subtracted from what you got in step two. What you get is your taxable income for the year.
Determining your annual Texas is the next thing that you will do. You will need to find out the amount of local, state, and income taxes which are withheld from your earnings. You will then multiply these numbers by the number of times that you get paid each year. The number that you get will be the total amount of taxes that will be withheld from your earnings that year.
The final step will be to subtract the total taxes that will be withheld from your income from what you got in step three. This will represent your W-2 earnings already or net income for the year.