A W-2 is the document you receive that reports your gross wages and the federal, state and local wages that have been withheld. Â You use this document to prepare your 1040 individual income tax return. Â You receive a copy of the W-2 and a copy is forwarded to the Internal Revenue Service. Â You may have heard of the IRS filing a substitute tax return for a taxpayer who does not file their return. Â 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. Â 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. Â The video below has been prepared to provide additional information regarding a W-2.
