The amount of taxes withheld from the paycheck for a financial year is used to file federal and state taxes. This amount is shown in W-2 forms.
The Internal Revenue Service (IRS) needs employers to mention the salary, wage details, and other information of their employees on the W-2 tax forms. This tax form also mentions information about all the federal, state, and any other taxes that are withheld from your paycheck. All the details in your W-2 form are extremely important when your preparing for filing the returns. This is crucial for the employee. To make sure that you do not miss out on the filing of this tax form, the IRS ensures that they send the form to the employer not later than January 31st, following the close of the financial year that is on December 31st.
Only an employee can receive the W-2 tax form. In case you are self-employed or an independent contractor, you would get the statements of earnings on Form 1099 and not receive the W-2 form.
The W-2 form is bifurcated into different boxes that shows numerous items that are related to your income. The first box is for the annual salary payments and wage along with the information regarding the federal tax that is being withheld in the second box.
It is to be noted here that just a part of your income is subject to the Social Security tax. The third box of the form reports the amount that is less than your total income for the financial year. The other parts of W-2 tax forms include Social Security tax, Medicare taxes that are pending, and other information with respect to the employees’ state income tax that is being withheld.
The identifying information segment of the W-2 tax forms is a vital section that can be noted by the IRS in cases where your reported income and information on W-2 tax forms do not match. Moreover, the accuracy of the reported income is checked by matching the payments stated with the corporate tax return policy of your employer. Also, the IRS receives a copy of the W-2 tax forms and are aware how much tax you owe. So, in case your name and Social Security number on your tax forms is inaccurate, make sure to immediately report the same and ask your employer to correct it.
Remember when you are filing your tax returns, a copy of W-2 tax forms must always be attached. In case you are e-filing your returns then the information of your W-2 is sent with the tax return; however, if you are filing the return by mail, you will need to place a hard copy of the W-2 tax form with your return.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.