A tax client, Wendy McDonald, tells you that she worked for a few weeks at a loc

Question

A tax client, Wendy McDonald, tells you that she worked for a few weeks at a local fast food restaurant in 2014. She made about $300.00. She says she has not received anything from them, like a W-2. She has received other W-2s from other jobs, but not from this place. She figured that it was because she only made a small amount. She wants to know what she needs to do in this situation. Does she need to report the income What does she do about the W-2 Please help Wendy sort all of this out so she can file her 2014 tax return Write a memo to Wendy explaining what she should do in this situation. It should be about 1/2 page to 1 page in length. Memo must be typed and in good grammatical form.

Explanation / Answer

W-2 contains information on the employee (such as social security number), amount of payment to employee and taxes (if any) withheld by the employer. Wendy should request her employer to provide form W-2. As per the provisions of IRS, the employer is required to provide W-2 form to the employee irrespective of the amount paid to the employee. In the given case, the amount disbursed is $300 and therefore, the employer is under an obligation to provide Wendy with form W-2.

Wendy is required to file a tax return in respect of income earned from all the sources/employers. That is, the Wendy is required to report the $300 earnings that she had earned from employer in question. The tax liability of Wendy will be determined on the basis of total gross income and will get adjusted for any tax already withheld by her employers. It is also possible that Wendy may be entitled to tax refund based on her total earnings for the year. In any case, Wendy is required to report her $300 earnings in her income tax return for the year 2014.

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