How Do You Calculate W-2 Income Tax?
Calculating your taxes is a very simple process as a W-2 employee. Using The IRS 1040EZ form, which is only one page in length, you can quickly and easily figure out your tax refund or burden for the year. By simply following the steps in order, you can do your taxes in a less than one hour. Enter the total from your W-2 income on line 1 of the 1040EZ tax return document. The 1040EZ tax form is the simplest way to calculate your tax return if you are an employee who receives their income on a W-2 form. Enter any amounts of taxable interest received from bank accounts or investments on line 2. This can include promo fees from banks as well as any interest received from online brokerage accounts. Enter any unemployment income over $2,400. The new tax rules dictate that unemployment income under this amount is tax-free, so if you received $3,600, you should put $1,200 on this line. Add and total the amounts from the first three lines, this is your adjusted gross income, which is the total
