A W-2 is the document you receive that reports your gross wages and the federal, state and local wages that have been withheld. You use this document to prepare your 1040 individual income tax return. You receive a copy of the W-2 and a copy is forwarded to the Internal Revenue Service. You may have heard of the IRS filing a substitute tax return for a taxpayer who does not file their return. The IRS is able to do this because your employer must report your wages and withholding on Form W-2, and others must report income on 1099s etc. Thus, a W-2 is an informational return used by the IRS and the taxpayer.
If you have questions regarding your individual or business tax matters, you can speak with a tax attorney by contacting The McGuire Law Firm. The video below has been prepared to provide additional information regarding a W-2.
