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William's Tax Planning Blog

By William Perez, About.com Guide to Tax Planning since 2004

Tax Question of the Day: Understanding Form W-2

Monday January 23, 2006
Throughout the tax season I will be answering one tax question per day.

Today's question comes from Shawn Knebel. He asks, "I was wondering what box 12 meant on my W-2 form? When I was filling out the box it said see instructions on box 12. Where could I find this information? Thanks Shawn."

You can find explanations of every line and box on IRS Form W-2 right here on About.com. I also provide a list of codes and their meaning for Box 12 of Form W-2.

If you are preparing Form W-2 for your employees, you'll want to have a copy of the IRS Instructions for Forms W-2 and W-3. This will provide the essential guidance you need to prepare W-2 statements accurately.

When using Form W-2 to prepare your tax return, all the best tax software handles Box 12 codes and their dollar amounts. In fact, if people have any code in Box 12, I recommend they use tax software to make sure their taxes are calculated accurately and with minimal headaches.

Throughout the tax season I will be answering one tax question per day. Do you have a question? Visit the Ask a Tax Question page. Disagree with my answers? Post your comments in the Tax Forum.

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