Is Your Employer Responsible for Filing Your Federal Tax Return?

A federal tax return is a document submitted to the Internal Revenue Service (IRS) that reports an individual’s income, expenses, and other financial information. This report allows the government to calculate the correct amount of tax owed or the refund due. This article clarifies the distinct roles of employers and employees in the tax filing process.

The Employer’s Role in Your Taxes

Employers play a significant role in managing certain aspects of your taxes, but they do not file your personal federal tax return. Their primary responsibility involves withholding taxes from your paychecks and remitting them to the IRS. These withheld amounts include federal income tax, and Social Security and Medicare taxes, which are collectively known as Federal Insurance Contributions Act (FICA) taxes.

For 2024, the employee’s Social Security tax rate is 6.2% on wages up to $168,600, with a maximum Social Security tax withheld of $10,453.20. The Medicare tax rate is 1.45% on all wages, with no income limit. Employers also contribute an equal share to these FICA taxes. Additionally, if an employee’s wages exceed $200,000 in a calendar year, employers are required to withhold an additional 0.9% Medicare tax from wages above that threshold; however, employers do not match this additional tax.

Employers are also responsible for reporting your total wages and the taxes they withheld to both the IRS and to you. This reporting is done through Form W-2, Wage and Tax Statement, which employers must issue to employees by January 31st each year. The W-2 form summarizes your earnings, including total wages, tips, and other compensation, along with the federal income, Social Security, and Medicare taxes withheld from your pay during the previous calendar year. This document is essential for you to prepare your own tax return.

Your Responsibility as a Taxpayer

The employee holds the sole responsibility for preparing and filing their own federal tax return. This responsibility extends beyond just the income reported on a W-2 from a single employer. Taxpayers must report all sources of income, which could include earnings from a second job, self-employment, investment income, or retirement distributions.

The tax return is also where you claim applicable deductions and tax credits that can reduce your total tax liability or increase your refund. For instance, for the 2024 tax year, the standard deduction amounts are $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for heads of household. By accurately reporting all income and claiming eligible deductions and credits, you can correctly calculate your total tax obligation or determine if you are due a refund.

Once you have gathered all necessary tax documents, including your W-2 and any other relevant forms like 1099s, you can choose a filing method. Options include using tax software, engaging a tax professional, or completing paper forms. Many taxpayers with an adjusted gross income (AGI) of $84,000 or less for tax year 2024 can use IRS Free File guided tax preparation software, while those above this threshold can use Free File Fillable Forms. The federal tax filing deadline for most individuals is typically April 15 of the following year. If you cannot file by this date, you can request an extension to October 15, but any taxes owed are still due by the April deadline to avoid penalties and interest.