Tax season is here and so is the anxious wait for your crucial paperwork to arrive. We get it. Dealing with W-2s and your various other forms is a pain.
How Does On-Demand Pay Affect Your W-2?
If you use a tool like On-Demand Pay, you might wonder if that changes anything for your taxes. The good news is: it absolutely does not complicate things!
Using On-Demand Pay through DailyPay doesn’t change who sends you your W-2 or what’s on it.
- Your W-2 is still sent by your employer, not DailyPay.
- The numbers are exactly the same. DailyPay doesn’t issue a separate tax form for the money you access early.
Think of it this way: the money you get through On-Demand Pay is simply a portion of your regular earned pay that you accessed early. It’s not a separate source of income and it doesn’t change your total annual pay.
Understanding Your Earnings
We know tax documents can be confusing. Essentially, your W-2 reflects your total gross earnings for the year.
- The total amount in your W-2’s Box 1 (Wages, Tips, Other Compensation) already includes all your pay, including any pay you accessed early through DailyPay.
- You are not taxed twice, and you don’t need to track every advance you took. Your employer handles all the standard payroll and tax withholding just like they always have.
When your W-2 arrives, you can file your taxes confidently. Your DailyPay activity keeps your tax filing simple. Using DailyPay just changes when you access your funds, not how those funds are taxed.
Get Your Refund Faster With the DailyPay Card
Now that you have your W-2 and you’re ready to file, here’s the best part: you can get your refund up to 5 days faster △ with the DailyPay Visa® Prepaid Card.
If you are expecting a refund this year, don’t wait any longer than you have to for your hard-earned money!
You’ve done the work, you’ve waited for the forms, and you filed your taxes. Now, get that refund feeling without the wait.
Ready to get your refund up to 5 days faster? Get started filing now!
△ Early access to eligible direct deposits made through the Automated Clearing House (ACH) network depends on when the payment file is received by the bank. We generally make these funds available on the day the payment file is received from the IRS, which may be up to 5 days earlier than the scheduled payment date. Early availability of direct deposits is not guaranteed. Whether we make funds available early depends on when we receive the payment file, any limitations we set on the amount of early availability, and standard fraud prevention screening.
The DailyPay Visa® Prepaid Card is issued by The Bancorp Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and can be used everywhere Visa debit cards are accepted.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank, N.A. (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).
