- Federal Employer Form - Including Form W-2; W-2G; 1099G, etc.
- Wages, Salaries, Tips
- Where to Report on Original Tax Return; What to Enclose
- Documentation to Submit with Abatement/Amended Tax Return
|SSA-1099||Social Security Benefit Statement|
|W-2||Wage and Tax Statement|
|W-2C||Corrected Wages and Tax Statement|
|W-2G||Certain Gambling Winnings (gambling winnings from horse and dog racing, jai alai, lotteries, keno, bingo, slot machines, sweepstakes, wagering pools, etc.)|
|W-2GU||Guam Wage and Tax Statement|
|W-2VI||US Virgin Islands Wage and Tax Statement|
|1042-S||Foreign Person's US Source Income Subject to Withholding|
|1098||Mortgage Interest Statement|
|1098-E||Student Loan Interest Statement|
|1098-T||Tuition Payments Statement|
|1099-A||Acquisition or Abandonment of Secured Property|
|1099-B||Proceeds from Broker and Barter Exchange Transactions|
|1099-C||Cancellation of Debt|
|1099-DIV||Dividends and Distributions|
|1099-G||Certain Government and Qualified State Tuition Program Payments (e.g. unemployment compensation, state and local income tax refund; agricultural payments; taxable grants; and earnings from a qualified state tuition program (QSTP))|
|1099-INT||Interest Income (over $10)|
|1099-LTC||Long-Term Care and Accelerated Death Benefits|
|1099-MISC||Miscellaneous Income (e.g. rent or royalty payments; prizes or awards that are not for services; non-employee compensation)|
|1099-MSA||Distributions from an MSA or a Medicare+Choice MSA|
|1099-OID||Original Issue Discount|
|1099-PATR||Taxable Distributions Received from Cooperatives|
|1099-R||Distributions from Pensions; Annuities; Retirement or Profit-Sharing Plans; IRA's; Insurance Contracts, Etc.|
|1099-S||Proceeds from Real Estate Transactions|
|4789||Currency Transaction Report|
|5471||Information Return of U.S. Persons with Respect to Certain Foreign Corporations|
|5472||Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business|
|5498||IRA Contribution Information|
|5498-MSA||MSA or Medicare+Choice MSA|
|8027||Employer's Annual Information Return of Tip Income and Allocated Tips|
|8300||Report of Cash Payments over $10,000 Received in a Trade or Business|
|8308||Report of a Sale or Exchange of Certain Partnerships Interests|
* Prior year state income tax refunds are not reported on the Mass return, but may need to be included on the federal return.
Wages, Salaries, Tips
In general, employers must provide every employee a W-2 to be issued by January 31. The W-2 reports the amount of wages, contributions, social security, U.S. or Massachusetts retirement and Medicare tax, as well as amounts withheld for state and federal income taxes. The amount of state wages earned is generally in Box 16 of Form W-2. This amount could be different from federal wages in Box 1 since Massachusetts does not exclude certain retirement plans from wages.
Allocated tips are in Box 8 of the W-2 and must be added to state wages to determine total Massachusetts wages. If wage amounts include tips, taxpayers should contact their employers to be sure that allocated tips are reported correctly on the W-2.
Medicare tax paid is in Box 6 and should be added to amounts paid for social security in box 4 and/or U.S. or Massachusetts retirement as a deduction.
State income tax withheld in Box 17 is the amount that employers have withheld from wages.
Certain Exclusions from Gross Income:
Massachusetts adopts the federal treatment for certain exclusions under the Internal Revenue Code, as amended and in effect on January 1, 2005. Any changes to these exclusions, however, will not be automatically adopted. Massachusetts will continue to follow the "code" as of January 1, 2005.
As a result of this change, Massachusetts now excludes certain items from Massachusetts gross income that previously were included. The state wages section (generally box 16) of Form W-2 should therefore not include the following items:
- voluntary employee contributions to 403b retirement plans;
- contributions to Savings Incentive Match Plan for Employees (SIMPLE) accounts;
- qualified moving expenses reimbursement related to Massachusetts employment;
- employer provided educational assistance;
- employer contributions to a medical savings account.
Federal Procedures for Employees Who Did Not Receive Their W-2s from Their Employers:
If a W-2 is not received, the employee should first contact the employer to verify whether the W-2 statement was mailed to the correct address.
An employee can also call the IRS at 1-800-829-1040 after February 15 to request a U.S. Form 4852, Substitute for Form W-2, Wage and Tax Statement. This form should be requested only after all reasonable attempts have been made to get the W-2 from an employer.
The employee provides the following information to the IRS on the Form 4852:
- the employee's name; address and zip code; and Social security number;
- the employer's or payer's name; address and zip code; and identification number (if known);
- estimation of wages, compensation and taxes withheld.
Massachusetts Procedures for Taxpayers Who Did Not Receive Their W-2s from Their Employers:
DOR will accept a U.S. Form 4852 in lieu of a W-2, but the employee must submit the year-end pay stub to verify the amount claimed in the box titled State tax withheld.
Form W-2, Massachusetts State and Public Employees Reminder:
Generally, the amount shown in Box 16 of the W-2 is for state wages which will be higher than the amount shown in Box 1 of the W-2 which is for federal wages. This difference is a result of the pension contributions which are excluded from income for federal tax purposes. When filing the Massachusetts income tax return, taxpayers must use the amount shown for state wages. If they enter the lower dollar amounts, their returns will be corrected and any refunds will be delayed. For Massachusetts wages, taxpayers should use the amount shown in Box 16 of the W-2.
|Form W-2 - Wage and Tax Statement -Box Item Explanations|
Below is an explanation of what is included in the boxes found on the W-2:
BOX 1 - Wages, tips, other compensation
BOX 2 Federal income tax withheld
BOX 3 Social security wages
BOX 4 Social security tax withheld
BOX 5 Medicare wages and tips
BOX 6 Medicare tax withheld
BOX 7 Social security tips
BOX 8 Allocated tips
BOX 9 Blank
BOX 10 Dependent care benefits
BOX 11 Non-qualified plans
The Following List Explains the Codes Shown in Box 12:
|12A||Uncollected social security or RRTA tax on tips.|
|12B||Uncollected Medicare tax on tips.|
|12C||Cost of group-term life insurance over $50,000 included in box 1, 3, and 5.|
|12D||Elective deferrals to a section 401(k) cash or deferred arrangement.|
This box also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement.
|12E||Elective deferrals under a section 403(b) salary reduction agreement.|
This box includes contributions made to a Tax Sheltered Annuity (TSA) Plan or to a Teacher's Insurance And Annuity Association And College Retirement Equities Fund (TIAA-CREF). (Effective January 1, 1998, this box reflects both the voluntary and mandatory contributions which are now both deductible in Massachusetts)
|12F||Elective Deferrals to a section 408(k)(6) salary reduction SEP.|
|12G||Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan.|
|12H||Elective deferrals to a section 501(c)(18)(D) tax exempt organization plan.|
|12J||Nontaxable sick pay not included in boxes 1, 3 and 5.|
|12K||20% excise tax on excess golden parachute payments.|
|12L||Nontaxable part of substantiated employee business expense reimbursements.|
|12M||Uncollected Social Security or RRTA tax on cost of group-term life insurance over $50,000. This applies for former employees only.|
|12N||Uncollected Medicare tax on cost of group-term life insurance coverage over $50,000.This applies for former employees only.|
|12P||Excludable moving expense reimbursements paid directly to an employee that are not included in Box 1, 3, or 5.|
|12Q||Nontaxable combat pay.|
|12R||Employer contributions to an Archer (MSA) medical savings account.|
|12S||Employee salary reduction contributions to a section 408(p) SIMPLE plan|
not included in Box 1.
|12T||Adoption Benefits not included in Box 1.|
|12V||Income from the exercise of nonstatutory stock option(s) included in boxes 1, 3 (up to social security wage base) and 5.|
|12W||Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to your health savings account.|
|12Y||Deferrals under a section 409A nonqualified deferred compensation plan|
|12Z||Income under section 409A on a nonqualified deferred compensation plan.|
|12AA||Designated Roth contributions under a section 401(k) plan|
|12BB||Designated Roth contributions under a section 403(b) plan|
|12DD||Cost of employer-sponsored health coverage. The amount reported with Code DD is not taxable.|
|12EE||Designated Roth contributions under a governmental section 457(b) plan. This amount does not apply to contributions under a tax-exempt organization section 457(b) plan.|
If the "Retirement plan" box is checked, employee was an active participant in any of the following:
If the "Third party sick pay" box is checked only if employer is a third party sick pay payer filing Form W-2 for an insurer's employee.
BOX 14 Other:
|Post-tax retirement contribution|
This box displays any Post-Tax Retirement contribution which is subject to federal taxation before being credited to the employee's retirement account and has been taxed accordingly. The Post-tax method is applicable for voluntary buy back (make up) make-up retirement contributions.
This box displays the amount of retirement which was deducted from the employee's earnings on a Pre-Tax basis. This retirement contribution will be subject to federal taxation at a later date and therefore is subject to taxation before being credited to the employee's account. This will include all contributions to State Retirement Plans, Higher Education Optional Retirement Plans, and any additional retirement paid during the 1998 calendar year including make-up retirement deductions for periods after January 12, 1988.
|Health insurance premium|
This box displays the employee's total payment of health insurance premiums paid on a pre-tax basis. These payments have not been deducted on a tax-deferred basis and therefore contributions will not be subject to taxation in later years.
BOX 15 State Employers stated I.D. no.
BOX 16 State wages, tips, etc.
BOX 17 State income tax withheld
BOX 18 Local wages tips, etc
BOX 19 Local income tax
BOX 20 Locality name
- Enter amount of Massachusetts wages on Form 1, Line 3 or Form 1-NR/PY, Line 5. Attach all Forms W-2;
Note: W-2 includes amounts excluded from Federal AGI: contributions to any annuity, pension, endowment or retirement fund of the US, Commonwealth or political subdivision thereof.
- Copy of U.S. W-2C- Statement of Corrected Wage and Tax Amounts, or letter from employer verifying corrected wages.