How to Attach a W-2 to a Tax Return: A Pro’s Guide

You don’t actually “attach” your W-2 to your tax return in the way you might imagine physically stapling it to a paper form. Instead, you use the information contained on your W-2 to accurately complete the various sections of your tax return. The key is to accurately transcribe the data from your W-2 onto the appropriate lines of your tax form (or input fields of your tax software) and keep a copy of your W-2 for your records. The IRS gets a copy directly from your employer.

Understanding the W-2 Form

Before diving into the “how,” let’s quickly review the W-2. It’s the Wage and Tax Statement that employers are required to send to their employees by January 31st each year. This form summarizes your earnings and the taxes withheld from your pay during the previous calendar year. Key boxes on the W-2 that you’ll need for your tax return include:

• Box 1: Total wages, tips, and other compensation.
• Box 2: Federal income tax withheld.
• Box 3: Social Security wages.
• Box 4: Social Security tax withheld.
• Box 5: Medicare wages and tips.
• Box 6: Medicare tax withheld.
• Boxes 12 a-d: Various codes and amounts representing things like retirement plan contributions (401(k)), health savings account (HSA) contributions, and other benefits. These are extremely important as they often reduce your taxable income.

Entering W-2 Information on Your Tax Return

Whether you’re filing online using tax software or completing a paper return, the process involves carefully transferring the information from your W-2 to the correct sections.

Filing Online with Tax Software

This is the most common and generally recommended method for most taxpayers. Tax software, such as TurboTax, H&R Block, or TaxAct, guides you through the process step-by-step.

1. Start a New Tax Return: Create an account or log in to your existing account with your chosen tax software.
2. Navigate to the Income Section: Most software will have a section specifically for entering income information. Look for phrases like “Wages & Income,” “Income Summary,” or similar.
3. Add a W-2: The software will likely have a button or link to “Add a W-2” or “Enter a W-2.” Click this.
4. Enter W-2 Information: The software will present a form that mirrors the layout of your W-2. Carefully enter the information from each box of your W-2 into the corresponding fields in the software. Double-check for accuracy! Typos are the most common cause of errors.
5. Repeat for Each W-2: If you worked for multiple employers during the year and received multiple W-2s, repeat steps 3 and 4 for each one.
6. Review Your Return: Once you’ve entered all your W-2 information, the software will calculate your tax liability or refund. Thoroughly review the entire return before submitting to ensure everything is accurate.

Filing a Paper Tax Return

While less common these days, some taxpayers still prefer to file a paper return. This method requires more manual effort and attention to detail.

1. Obtain the Correct Tax Form: Use Form 1040, U.S. Individual Income Tax Return. Make sure it’s the correct version for the tax year you’re filing. You can download it from the IRS website or obtain it from a local library or post office.
2. Locate the Wages Section: On Form 1040, find the section for reporting wages, salaries, and tips. This is typically near the beginning of the form.
3. Enter W-2 Information: Enter the amount from Box 1 of your W-2 on the appropriate line for wages. If you have multiple W-2s, add the amounts from Box 1 of each W-2 together and enter the total.
4. Report Federal Income Tax Withheld: Enter the amount from Box 2 of your W-2 on the line for federal income tax withheld. Again, if you have multiple W-2s, add the amounts from Box 2 of each W-2 together and enter the total.
5. Complete Other Sections: Complete all other relevant sections of Form 1040, including deductions, credits, and other income sources.
6. Sign and Mail: Sign and date the completed form and mail it to the IRS address specified in the instructions. Keep a copy of the completed form and all supporting documents, including your W-2s, for your records.

Important Note: Even when filing a paper return, do not physically attach your W-2s to the tax form. The IRS receives copies of your W-2s directly from your employers. Your role is simply to accurately report the information from your W-2s on your tax return.

Key Considerations and Best Practices

• Accuracy is Paramount: Double-check all numbers and information you enter. A small error can lead to delays in processing your return or even an audit.
• Keep Your W-2s Safe: Store your W-2s in a secure place for at least three years from the date you filed your return or two years from the date you paid the tax, whichever is later.
• Lost or Incorrect W-2: If you lose your W-2 or believe it contains incorrect information, contact your employer immediately. They can provide you with a replacement copy (Form W-2c) or correct the error.
• Consult a Tax Professional: If you have complex tax situations or are unsure about how to report your W-2 information, consider consulting a qualified tax professional.

Frequently Asked Questions (FAQs)

1. What if my employer doesn’t send me a W-2 by January 31st?

Contact your employer immediately. If you still haven’t received it by mid-February, contact the IRS. They can contact your employer and request the W-2. Be prepared to provide the IRS with your employer’s name, address, and your dates of employment.

2. My W-2 has an error. What should I do?

Notify your employer immediately. They will need to issue a corrected W-2, called a Form W-2c (Corrected Wage and Tax Statement). Wait for the corrected W-2 before filing your tax return.

3. I have multiple W-2s. Do I need to file a separate tax return for each one?

No. You combine the information from all your W-2s onto a single tax return. You’ll add up the wages from Box 1 of each W-2, the federal income tax withheld from Box 2 of each W-2, and so on.

4. Can I file my taxes without a W-2?

It’s not recommended, but it is sometimes possible. You’ll need to estimate your income and taxes withheld as accurately as possible. Use Form 4852 (Substitute for Form W-2, Wage and Tax Statement). Be aware that filing without a W-2 increases your risk of an audit. Contacting your employer for a duplicate W-2 is always the best first step.

5. What are the codes in Box 12 of my W-2?

Box 12 contains codes that represent various types of compensation or benefits, such as 401(k) contributions (Code D), health savings account (HSA) contributions (Code W), and more. These codes are crucial for correctly reporting your income and deductions. The tax software will guide you, but understanding what these codes represent will further enable you to properly understand your taxes.

6. Do I need to include state and local taxes withheld from my W-2 on my federal tax return?

Yes. While Box 2 specifically addresses federal taxes, state and local taxes withheld, usually found in Boxes 16-17, are essential for accurate tax calculations. This information is also typically entered in your tax software.

7. I worked in a state different from where I live. Which state’s tax return do I file?

You generally need to file a tax return in the state where you worked, even if you don’t live there. You may also need to file a tax return in your state of residence, depending on the specific state laws.

8. What happens if I accidentally enter the wrong information from my W-2?

If you realize you made an error after filing your return, you’ll need to file an amended tax return using Form 1040-X (Amended U.S. Individual Income Tax Return).

9. Is it safe to email my W-2 to my tax preparer?

While convenient, emailing your W-2 is generally not considered a secure method due to the sensitive personal information it contains. Consider using a secure file-sharing service or delivering the W-2 in person.

10. I’m self-employed but also received a W-2. How does that work?

You’ll report your self-employment income on Schedule C (Profit or Loss From Business) and your W-2 income on Form 1040. Your self-employment income is subject to self-employment tax (Social Security and Medicare taxes).

11. What if I received unemployment compensation in addition to wages reported on a W-2?

Unemployment compensation is taxable income and must be reported on your tax return. You’ll receive Form 1099-G (Certain Government Payments) showing the amount of unemployment benefits you received.

12. Where can I find more information about W-2 forms and filing my taxes?

The IRS website (irs.gov) is a comprehensive resource for tax information. You can also consult a qualified tax professional for personalized guidance.

By following these guidelines and carefully entering your W-2 information, you can ensure that your tax return is accurate and complete. Remember that while this document tries to capture the essence of filing, always consult the IRS or a tax professional in order to adhere to all the policies and laws that are currently in effect at the time of filing.