How does the W-2 Auto Tax Calculation work in TaxBandits?

Our Auto Tax Calculation feature automatically calculates Social Security and Medicare taxes based on the wage details you enter on your W-2 form, saving you time and reducing the risk of manual errors. 

Step 1: Sign in to your TaxBandits account. Navigate to ‘1099/W-2’ Dashboard → Click ‘Start New Form’.

 

 

Step 2: Select ‘W-2 Federal & State’ under the ‘Form W-2’. 

 

 

Step 3: We support W-2 filing for both current and previous tax years. Select the tax year for which you need to file the W-2 form.

 

 

Step 4: Select ‘Enable Auto-Calculation’ at the top-right corner of the W-2 form to auto-fill the respective fields based on the wage amount entered.

 

 

Step 5: By enabling the auto tax calculation and entering the values for wages, tips, and other compensation in Box 1, the system automatically calculates the Social Security Tax (Box 4) and Medicare Tax (Box 6) amounts.

You can enable or disable the Auto Tax Calculation for Form W-2 anytime from the ‘Filing Settings’ section under ‘Account Settings’. Once enabled, this setting will be applied as the default for all future W-2 filings, unless you disable it.