It is evident that you don’t have to wait for the W2 so as to have your tax return hence you can always get it from your paystubs. You will not have to wait for a long time since the same information that you will have in your W2 is the same one that you will have in your paystub. One will be able to get the same information if they know how to calculate the paystub. The discussion below is on how to calculate W2 from a paystub.
Firstly you will have to acquire the gross income of which this is the first thing that you will have to do when getting W2 from a paystub. There is always that initial amount that you will earn without deducting any amount that is the gross income. To make the calculations right you have to make sure that you include all the earnings. If you do what is supposed to be done you will get the exact amount that you will have earned.
The second step is to deduct all the non-taxable wages from the gross income above. In the first step we got the gross income and now we will have to deduct all the non-taxable wages from the gross income. There are those wages that do not include the income, federal or the state taxes and those are the non-taxable wages. Therefore, you have to make sure that you add all the non-taxable wages without leaving any of them out and then deduct the amount that you will have acquired from the gross income.
The third step is to get the taxable income by accounting for the other deductions. There are so many deductions that are there and you have to make sure that you include all the deductions so as to get the exact amount. Using your paystub you can get the sum of your deductions so that you can subtract from the amount you had. After the subtraction you will get the taxable income of which will always match the amount that should have been in the W2 form.
The other thing that you will have to do is to calculate the annual taxes and then get the W2 earnings. We have that specific amount of taxes that will be withheld every year. To get the amount that has been withheld you will have to multiply the taxes withheld every month by the number of times that you get paid every year. To finally calculate the W2 you will have to subtract the amount withheld with the amount you got in step three.
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