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W-2 Form 2010, What’s New For W-2 Form 2011
Taxpayers should receive their W-2 Form 2010 by January 31, 2011. Employees need to be on the look out for the W-2 form 2010, so they can begin to prepare their income tax return. Recent changes in laws bring changes to the W-2 Form 2011.
By: Harbor Financial
W-2 Form information provided by Harbor Financial will help tax filers understand how the W-2 Form changes will affect their future tax filing. The rate of social security tax withholding (for employees only) is reduced from 6.2% to 4.2% for income payments made in 2011 due to The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The amount of social security tax withheld will be placed in box 4 of the W-2 tax form and should not exceed $4,485.60 for the employee.
Harbor Financial offers tax advice to taxpayers and filers concerning the W-2 Tax Form and the social security withholding amounts. With the news of the tax rate being lowered for social security tax, filers may want some tax tips for the 2011 tax return.
Advance Earned Income Credit (EIC) Payments
Beginning after December 31, 2010 advance earned income credit payment is eliminated from the W-2 Form. 2011 W-2 and W-3 Forms have deleted advance earned income credit payments which used to be placed in box 9. Box 9 will be grayed out on the 2011 W-2 Form.
Form W-3, Kind of Employer
Box b of the 2011 W-3 Form has been expanded which includes a new section to improve document matching. 2011 W-3 Form box b has five new check boxes for “Kind of Employer.” Filers are now required to check one of these five new check boxes. Filers are instructed to check the “None Apply” box if none of the other boxes apply.
Penalties for Failure to File Correct W-2 Form Information
W-2 Form information provided for the employee must be correct or else penalties will be handed out and the penalties have increased. The penalties are no laughing matter and the employer will quickly understand this when the penalty prices are seen. The W-2 Form penalties apply to both paper filers and e-filers. W-2 Form penalties serve as a reminder for all employers and all employees can refer to section 6721 if they have not received their W-2 Form by January 31.
W-2 Form Information
Harbor Financial offers tax information which can help all tax filers understand their 2010 W-2 Form and many other tax topics as well. Individuals have used the tax tips and tax tools such as, the tax return calculator free of charge to ensure the biggest tax refund possible. Harbor Financial also offers many new tax videos through the Harbor Financial channel on YouTube. W-2 Form information can be found on the Harbor Financial website along with video tutorials on tax forms through the Harbor Financial channel on YouTube.
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Visit http://www.harborfinancialonline.com to gain helpful knowledge with preparing income tax forms efficiently and accurately. The tax videos provide visual and audio how to lessons guiding the taxpayer through filling out proper forms with full explanations making filling them out easy to understand. For over seven years Harbor Financial has helped thousands of taxpayers prepare and file income tax forms, and provides a free tax refund estimator.
Harbor Financial provides tax information, a free tax calculator, and online tax filing.
Harbor Financial Online is based in Traverse City, Michigan.