Notice to Employee
Do you have to file? Refer to the Instructions for Forms 1040 and 1040-SR 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 2020 Guam
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
Estimated tax. If you expect to owe $1,000 or more in tax (including self-
employment tax) for 2021, you may have to make estimated tax payments to the
U.S. Internal Revenue Service. Use Form 1040-ES, Estimated Tax for Individuals.
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 Guam income tax withheld. If you are required to file your return with
the United States or the Commonwealth of the Northern Mariana Islands instead of
with Guam, add the Guam income tax withheld to the other withholding tax credits
on your income tax return.
Credit for excess social security tax. If you had more than one employer in 2020
and more than $8,537.40 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
Unreported tip income. You must file Form 4137, Social Security and Medicare
Tax on Unreported Tip Income, with your income tax return to report at least the
allocated tip amount unless you can prove with adequate records that you
received a smaller amount. If you have records that show the actual amount of tips
you received, report that amount even if it is more or less than the allocated tips.
Use Form 4137 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 Instructions for Forms 1040 and 1040-SR 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 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 $19,500 ($13,500 if you have only SIMPLE plans;
$22,500 for section 403(b) plans if you qualify for the 15-year rule explained in
Pub. 571). Deferrals under code G are limited to $19,500. Deferrals under code H
are limited to $7,000.
However, if you were at least age 50 in 2020, your employer may have allowed
an additional deferral of up to $6,500 ($3,000 for section 401(k)(11) and 408(p)
SIMPLE plans). This additional deferral amount is not subject to the overall limit on
elective deferrals. For code G, the limit on elective deferrals may be higher for the
last 3 years before you reach retirement age. Contact your plan administrator for
more information. Amounts in excess of the overall elective deferral limit must be
included in income. See the “Wages, Salaries, Tips, etc.” line instructions for your
(continued on back of Copy C)