Wages and salaries are payments you receive as an employee for
performing services for your employer. Generally, everything you
receive in payment for personal services must be included in your
gross income. Amounts withheld from your pay for income tax, social
security and Medicare taxes, pensions, insurance, and union dues are
considered received by you and must be included in your gross income
in the year they are withheld. Amounts withheld under certain salary
reduction plans are not included in gross income in the year they are
If your employer pays your social security and Medicare taxes without
deducting them from your gross wages, the amount of tax paid by your
employer is extra pay to you and must be included in your gross
Your employer should give you a Form W-2 showing your total income
and withholding for the year.
Total the amounts from all your Forms W-2. If you are filing a joint
return, also include your spouse's wages. Enter the amount on the
appropriate line for wages, salaries, and tips on your tax return.
Then total the federal income tax withheld from all Forms W-2. Do not
confuse this with the social security and Medicare taxes withheld.
Enter the total federal income tax withheld on the line for
withholding on your tax return. Attach copy B of each Form W-2 to the
spot indicated on the front of your tax return.
If you receive another Form W-2 after you file your return, you must
file an amended tax return, Form 1040X. Topic 308 gives information
on amended returns.
If it is past January 31, 1997, and you have not yet received your
1996 Form W-2, refer to Topic 154 for assistance.
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