What to Double Check on your Paychecks before Tax Season

Written by  //  2016/01/27  //  Money Management  //  Comments Off on What to Double Check on your Paychecks before Tax Season

Your paychecks hold valuable pieces of information about you, your employment, and any tax benefits to which you may be entitled. Before you file for taxes this next year, you should make sure that these key details are accurate and complete on your next paycheck stub.

Contact Information

The most obvious piece of information you should check is your contact details. Make sure your pay stub has your legal name and correct address on it.

If it displays an old address, or you notice a typo in your name, bring this to your personnel manager’s attention immediately. Your W-2 form is based off the details on your paychecks and if this information is wrong, your W-2 likewise will be incorrect, which could make it difficult for your tax return to be accepted by the IRS. The IRS may suspect that you are committing fraud, or that someone is wrongfully using your identify information to file a return in your name.

Social Security Number

Like your contact details, your Social Security number should also be verified for accuracy. If your employer uses an online service to Generate Check Stubs and gives this service an incorrect SSN for you or any of its workers, it can take several days, if not longer to correct this important piece of information. If you verify it before tax season, you can rest assured that it will be corrected so you can file taxes without any inconvenience.

Dependents and Exemptions

If you are married or have children, you can declare them as dependents on W-4 form at work. Your pay stub should reflect the number of dependents you claim accurately so you can receive any refund to which you may be entitled.

If the number of dependents is wrong or if you have new exemptions you want to claim, you should ask your employer for a new W-4 to complete and submit before tax season. Taking care of this inaccuracy will save you from any unnecessary IRS scrutiny, and also give you a refund that matches the number of exemptions you claim.

Other Pay

Along with your year-to-date income total, you should verify the amounts of any other pay you received, such as commissions or jury pay. You must legally declare this income on your return. If this other pay is not accurate, you should verify the amount with your HR manager.

Your paychecks are crucial to your tax return. Verify these important pay stub details before you file taxes to make sure everything is in order, and come tax season you don’t encounter any snags.

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