Can You Not File a W-2 on Your Tax Return?

A W-2 form, officially known as the Wage and Tax Statement, is a tax document employers issue to their employees and the Internal Revenue Service (IRS) each year. This form details an employee’s annual wages, tips, and other compensation, along with federal, state, and local taxes withheld. It also includes information on Social Security and Medicare taxes, and certain employer-provided benefits or retirement contributions. The W-2 form is a fundamental record for employees preparing their tax returns and for the IRS to verify reported income.

The General Requirement to Report W-2 Income

Individuals cannot avoid reporting the income detailed on a W-2 form. Employers are legally obligated to provide a W-2 to each employee by January 31 following the close of the tax year. This deadline ensures employees have sufficient time to prepare their tax returns. Employers also send a copy of each employee’s W-2 to the Social Security Administration (SSA), which then shares this information with the IRS.

The information on the W-2 is crucial for accurately preparing an individual’s income tax return. The IRS receives its own copy of the W-2 directly from the employer, allowing it to cross-reference the income and withholding amounts reported by the employer with what the taxpayer reports. Taxpayers have a legal obligation to report all taxable income, including wages and tips shown on a W-2, even if they do not physically receive the form.

What to Do If You Don’t Receive a W-2

If you did not receive your W-2 form by the January 31 deadline, contact your employer directly to inquire about the form. It is possible the form was mailed to an old address, lost in transit, or delayed.

If your employer is unresponsive or unable to provide the W-2 by mid-February, contact the IRS for assistance. Be prepared to provide your name, address, Social Security number, and the employer’s name, address, phone number, and Employer Identification Number (EIN), if known.

If you still do not receive your W-2 in time to file your tax return by the April deadline, you can use IRS Form 4852, “Substitute for Form W-2, Wage and Tax Statement.” This form allows you to estimate your wages and withheld taxes using information from your final pay stub or other year-to-date earnings statements. You must attach Form 4852 to your tax return, explaining the efforts made to obtain your W-2. Filing with Form 4852 may cause delays in processing any refund. If you later receive the actual W-2 and it differs from what you reported, you may need to file an amended tax return using Form 1040-X.

Reporting Other Types of Income

Not all taxable income is reported on a W-2 form. Even if an individual does not receive a W-2, they are still legally required to report all taxable income to the IRS. This includes income from self-employment, independent contractor work, interest, dividends, or rental properties.

Various other tax forms, known as 1099 forms, report income not earned as a traditional employee. For instance, Form 1099-NEC reports nonemployee compensation paid to independent contractors or freelancers, generally for payments of $600 or more. Form 1099-INT reports interest income, while Form 1099-DIV reports dividends. Other forms like Form 1099-MISC report miscellaneous income. The presence or absence of a W-2 does not eliminate the taxpayer’s obligation to report all income from all sources.

Consequences of Not Reporting Income

Failing to report taxable income can lead to significant consequences from the IRS. The IRS cross-references income reported by employers and other payers with what individuals report on their tax returns. Discrepancies can trigger penalties and further scrutiny.

Penalties may include a failure-to-file penalty, typically 5% of unpaid taxes per month up to 25%. A failure-to-pay penalty of 0.5% per month, also up to 25%, may apply. An accuracy-related penalty, usually 20% of the underpaid tax, can also be assessed if income is substantially understated or due to negligence.

Interest charges on underpayments are applied from the tax due date until the balance is paid. In severe instances, such as deliberate attempts to evade taxes, criminal charges can result in significant fines and imprisonment. Accurately reporting all income is always in the taxpayer’s best interest.