DESCRIPTION
This module provides a high-level introduction of compensation and retirement income concepts for federal tax reporting purposes. It covers basic compensation terminology, employee versus non-employee income, and key information returns including Forms W-2, 1099-NEC, 1099-MISC, and 1099-R. The module also introduces recent OBBBA provisions related to the no tax on tips and no tax on overtime deductions. Participants examine how common wage, tax, and benefit items are reported within specific Form W-2 boxes and discuss common issues that can arise in compensation reporting.
LEARNING OBJECTIVES
- Describe basic compensation terminology relevant to employee and non-employee income reporting.
- Identify where common compensation and retirement income items appear on Forms W-2, 1099-NEC, 1099-MISC, and 1099-R.
- Recognize the OBBBA provisions related to the no tax on tips deduction and the no tax on overtime deduction and their impact on wage reporting.
- Match typical wage, tax, and benefit items to the appropriate boxes (Boxes 1–6) on Form W-2.
- List common errors made when dealing with Forms W-2 and 1099-R.
