DO NOT FILE
November 15, 2021
DRAFT AS OF
Notice to Employee
Do you have to file? Refer to the Form 1040 instructions to determine if you are
required to file a tax return. Even if you don’t have to file a tax return, you may be
eligible for a refund if box 2 shows an amount or if you are eligible for any credit.
Copies B and C; corrections. File Copy B of this form with your 2022 U.S. Virgin
Islands income tax return. Keep Copy C for your records. If your name, social
security number (SSN), or address is incorrect, correct Copies B and C and ask
your employer to correct your employment record. Be sure to ask your employer
to file Form W-2c, Corrected Wage and Tax Statement, with the Social Security
Administration (SSA) to correct any name, amount, or SSN error reported to the
SSA. Be sure to get your copies of Form W-2c from your employer for all
corrections made so you may file them with your tax return.
Estimated tax. If you expect to owe $1,000 or more in tax for 2023, you may have
to make estimated tax payments to your local territory tax department. You may
also have to make estimated tax payments to the U.S. Internal Revenue Service if
you are subject to self-employment taxes. See Pub. 570, Tax Guide for Individuals
With Income From U.S. Possessions, for additional information.
Employee’s social security number (SSN). For your protection, this form may
show only the last four digits of your SSN. However, your employer has reported
your complete SSN to the V.I. Bureau of Internal Revenue and the SSA.
Clergy and religious workers. If you aren’t subject to social security and
Medicare taxes, see Pub. 517, Social Security and Other Information for Members
of the Clergy and Religious Workers.
Cost of employer-sponsored health coverage (if such cost is provided by the
employer). The reporting in box 12, using code DD, of the cost of employer-
sponsored health coverage is for your information only. The amount reported
with code DD is not taxable.
Credit for excess social security tax. If one employer paid you wages during
2022 and more than $9,114 in social security tax was withheld, you can claim a
refund of the excess by filing Form 1040 or 1040-SR with the V.I. Bureau of
Internal Revenue, 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802.
If you had more than one employer in 2022 and more than $9,114 in social
security tax was withheld, you can have the excess refunded by filing Form 843,
Claim for Refund and Request for Abatement, with the Department of the
Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, USA. However,
if you are required to file Form 1040 or 1040-SR with the United States, you must
claim the excess tax as a credit on Form 1040 or 1040-SR.
Unreported tip income. You must file Form 4137, Social Security and Medicare
Tax on Unreported Tip Income, with your income tax return to figure the social
security and Medicare tax owed on tips you didn’t report to your employer. Enter
this amount on the wages line of your tax return. (Form 1040-SS filers, see the
instructions for Form 1040-SS, Part I, line 6.) By filing this form, your social
security tips will be credited to your social security record (used to figure your
benefits).
(See also the Instructions for Employee on this page and the back of Copy C.)
Instructions for Employee
(See also Notice to Employee on this page.)
Box 5. You may be required to report this amount on Form 8959, Additional
Medicare Tax. See the Form 1040 instructions to determine if you are required to
complete Form 8959.
Box 6. This amount includes the 1.45% Medicare Tax withheld on all Medicare
wages and tips shown in box 5, as well as the 0.9% Additional Medicare Tax on
any of those Medicare wages and tips above $200,000.
Box 11. This amount is (a) reported in box 1 if it is a distribution made to you from
a nonqualified deferred compensation or nongovernmental section 457(b) plan, or
(b) included in box 3 and/or box 5 if it is a prior year deferral under a nonqualified
or section 457(b) plan that became taxable for social security and Medicare taxes
this year because there is no longer a substantial risk of forfeiture of your right to
the deferred amount. This box shouldn’t be used if you had a deferral and a
distribution in the same calendar year. If you made a deferral and received a
distribution in the same calendar year, and you are or will be age 62 by the end of
the calendar year, your employer should file Form SSA-131, Employer Report of
Special Wage Payments, with the Social Security Administration and give you a
copy.
Box 12. The following list explains the codes shown in box 12. You may need this
information to complete your tax return. Elective deferrals (codes D, E, F, and S)
and designated Roth contributions (codes AA, BB, and EE) under all plans are
generally limited to a total of $20,500 ($14,000 if you have only SIMPLE plans;
$23,500 for section 403(b) plans if you qualify for the 15-year rule explained in
Pub. 571). Deferrals under code G are limited to $20,500. Deferrals under code H
are limited to $7,000.
(continued on back of Copy C)