Form 8655 Taxpayer 2024

P>Music David here. You're a certified remote financial planner, using technology to make financial advice available to you on your schedule and wherever you may be. It's that time of the year again - tax season. Everyone's gathering all their documents, such as w-2s, 1099s, 1095, 1098 K, and more. But what the heck does all this stuff mean? The truth is, if you want to get the biggest refund possible, it's important to understand your tax documents and how your decisions throughout the year affect them. That's why I'm doing a series of posts to help you understand all of the information that's thrown at you during tax season. Today, we're starting with the most common tax document form: w2. So, first, what is your w-2? It's a wage and tax statement that is generated by your employer to report to you and the government a handful of information about your compensation, benefits, and tax withholding throughout the year. The first question that a lot of people ask about the w-2 is very simple: why do we get four copies of this thing? Well, nowadays, most people file their returns electronically, so having multiple copies is irrelevant. But some people still prefer to file their returns on paper, in which case they'll need to staple one copy of their w-2 to each return - their federal, state, and local returns. And that leaves one copy for them to keep to themselves. Makes sense, right? The next question I hear a lot is why don't these numbers match up? My Social Security Medicare wages are higher than my other wages. The most common reason for this variance is pre-tax contributions to retirement plans, like 401Ks and 403Bs. These contributions reduce your wages for federal and state tax purposes, but not for the...