How To Use Last Pay Stub For Taxes

Tax period is quite often associated with fear. The stress associated with it may sometimes exhaust you. However, it might turn into a habit over a period of time. This occurs when you remain acquainted with and even gain an affinity for filing your taxes and deductions.

The majority of the information you need to be up to date with your taxes is on your W-2 form. These include your gross and net income as well as the associated deductions. Sometimes, however, companies are unable to provide the W-2. Pay stubs are useful in this situation. How to use last pay stub for taxes will be covered in this article.

What Is Your Last Pay Stub?

An official document that shows a record of your earnings is what is called your pay stub. It is usually given to employees by their employers. It’s sometimes known as a paycheck stub. This document serves as evidence of income and includes important details. You can find details, such as employee's hours worked, tax deductions, and salary amount. A pay stub also includes details on employer-sponsored health insurance, such as dental and disability insurance. Your last pay stub is the breakdown of your last payment for the year.

How To Use Last Pay Stub for Taxes

Here are steps on how to use last pay stub for taxes:

1. Gather Necessary Information

To begin submitting tax returns, you must first get your social security numbers and any dependents’ social security numbers. Next, you'll need the appropriate IRS paperwork.

Form 1040 must be filed by all Americans. However, various income scenarios need various IRS forms. For example, freelancers and self-employed people must complete Form 1099. On the other hand, you will submit a 1099G if you have been unemployed for the whole year. A credit report, health insurance, marital status, and taxes from the prior year are additional details needed when filing taxes. 

2. File Online

When it comes to how to use last pay stub for taxes, this is the best method. The first step is to visit the IRS website and complete Form 4852. If your company has not filed your W-2 or your prior W-2 was incorrect, you must complete Form 4852. You cannot use 4852 if your W2 is merely misplaced. It only counts if you've already asked your company for a W-2 and they haven't produced one.

For those who choose to electronically file their taxes, the IRS has a limit on income. For you to be eligible for online tax filing, your income must be less than $73,000. In the event that your income exceeds that threshold, you have to print and send them by mail. Additionally, if you’re older than 16 and have already filed income taxes, you can also file online.

3. Get Employer Identification Number

Employer identification, or EIN, is essential to how to use last pay stub for taxes to file. Your most recent check stub will include your cumulative earnings and deductions from the previous tax year. But, in order to speed up processing, you will need the EIN. 

4. Fill Form 4852

Regarding personal information, you can write your name, address and social security number in lines 1-3. In line 5, you can enter the name of the employer or payer. If you have their tax ID, you enter it at line 6. However, you will not be able to file the electronic form without the company’s tax ID number.

Your gross pay, federal income tax, social security taxes, Medicare taxes, and state income taxes are included. This is on lines 7a–7i for replacement information for the Form W-2. These numbers can be summed up from all your IRS pay stubs or can be depicted on the annual statement. 

You will be expected to write a short rationale of how you got to those numbers after all your computations. You do this in line 9. You can affirm that they were the total of the amounts received from your last pay stub. Extra information on actions you have carried out to try and obtain your W-2 form from your employer must also be provided. This is in Line 10. It has to be printed and posted after signing it.

How To Use Last Pay Stub for Taxes FAQs

1. Can my company provide me with a W-2?

Yes, you may ask your employer for the W-2 form. If February 1st has passed, contact your organization’s leadership to see if they would give the workers a W-2 form. Additionally, make sure the administrator has your current, accurate address on file. The W-2 could have been sent to your old address by the employer.

2. What Would Happen If I Made a Mistake on my W-2?

Form 1040-X, which is accessible on the IRS website, can be used to make changes to the tax return.

Final Thoughts

Filing taxes using your last pay stub may seem daunting, but with the right steps, it can be straightforward. By gathering all necessary information and following the guidelines provided, you can ensure accurate and timely tax filing. This approach helps you comply with tax obligations. It also provides peace of mind, knowing your financial matters are in order.

Here, at our pay stub creator, we simplify the process of managing payroll and taxes. Our tools help you create accurate and professional pay stubs with ease. Our job is to handle the complexities of payroll management. Let us do that while you focus on managing your finances effectively.