W-2 Tax Forms 2009

W-2 tax forms for your 2009 income taxes will be mailed out by your employers within the next month or two.  In my last job we worked closely with many companies sending out tax forms and December and January were extremly busy months as they scrambled to make sure that they had all the correct information and met all the IRS tax form deadlines.

Inevitably someone would have the wrong address or a typo in their social security number and we’ve have to send corrected tax forms. So take a minute and make sure that your personal information on file with your employer is correct.  An incorrect home address could leave you waiting for your W-2 to arrive, while an invalid social security number will require you to request a new one with the corrected number. 

W-4 Tax Form

Now’s also a good time to review your W4 (withholding allowances) elections for 2010. Here’s a link to the IRS website for the 2010 W-4 form.  It’s not always simple deciding how to fill out form W-4. 

If you choose too many withholding allowances then you could underpay your federal income taxes and owe late fees and penalties.  On the other hand, if you claim too few exemptions you may over pay your taxes and the IRS will have your money instead of it earning interest in your bank account. You can use the IRS Withholding Calculator to help you figure out the right number for your situation.

Remember, if your income is below the minimum and you marked EXEMPT on your last W4, that will expire at the end of December and you’ll have to submit a new W-4 for 2010.

Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

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