<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=239403043171955&amp;ev=PageView&amp;noscript=1">

Wealth Management Team

February 08 , 2016

Investment Basics: Tax Season Preparation Tips

tax_season_prep.png

If seeing a robin means spring has sprung, then the arrival of your W-2 (officially Form W-2, Wage and Tax Statement) signals the beginning of tax season.

Review your federal form W-2

The information on your W-2 also goes to the Social Security Administration, so you might want to make sure your name and Social Security number are correct and the amounts in the various boxes match those on your year-end paystub(s).

What is Box 12 DD?

Speaking of boxes, there are several types of compensation and benefits reported in Box 12 (check the back of your W-2 for a list of codes). If you see an amount coded DD, it represents the cost of employer-sponsored health care (if provided). Not all employers are required to provide this information at this point, but if there is a dollar amount, don’t worry. It’s for your information only and it is not taxable.

Keep tax records for at least 3 years

The IRS recommends keeping W-2s for three years after the deadline for filing the related income-tax return. However, you might want to hang on to them significantly longer — in case of a dispute with Social Security over your work record or wages.

Need tax help this year? Contact us and we'll put you in touch with an experienced professional.

 

Call Us Email Us

Back to Articles