What Happens If I Forgot to File One of My W2?

Forgetting a W2 form during tax season can create complications for taxpayers. These forms, officially known as Wage and Tax Statements, summarize an individual’s annual wages and the taxes withheld by their employer. When one is overlooked, it can lead to inaccuracies on a filed tax return. Understanding the implications and corrective measures is important for tax compliance.

Identifying a Missing W2

Discovering a missing W2 often begins with reviewing financial records. Individuals compare their pay stubs from the tax year against the income reported on their tax return. Discrepancies between the total earnings shown on pay stubs and the W2s received can signal that a form is missing.

Another method for identifying an unreceived W2 involves requesting a Wage and Income Transcript directly from the tax authority. This transcript provides data from information returns, such as W2s and 1099s, that employers and other payers have reported. Taxpayers can access this transcript online, by mail using Form 4506-T, or via a telephone request.

Consequences of Incomplete Filing

Filing a tax return without including all W2s can result in an inaccurate calculation of tax liability. This oversight might lead to an underpayment of taxes. The tax authority may then issue notices, such as a CP2000, indicating a discrepancy between reported income and the income reported by employers.

Underpayments can trigger penalties and interest charges. An underpayment penalty might be imposed if less than 90% of the current year’s tax liability or 100% of the prior year’s tax liability was paid through withholding or estimated payments. For high-income taxpayers, this prior year threshold increases to 110%. A failure to pay penalty applies to unpaid taxes, typically at a rate of 0.5% per month or part of a month, up to a maximum of 25% of the unpaid tax.

An accuracy-related penalty, amounting to 20% of the underpayment, can also be assessed if the underpayment is due to negligence or a substantial understatement of income. A substantial understatement occurs if the tax liability is understated by more than 10% of the correct tax or $5,000, whichever amount is greater. Interest also accrues on any unpaid taxes and penalties, compounding daily until the balance is fully settled. If the missing W2 would have shown an overpayment, the refund might be delayed until the correct income and withholding information is provided and processed.

Steps to Correct Your Tax Return

Once a missing W2 is located, correcting a previously filed tax return involves using Form 1040-X, Amended U.S. Individual Income Tax Return. This form allows taxpayers to report changes to their income, deductions, credits, or payments that affect their tax liability.

When completing Form 1040-X, individuals must clearly show the original figures as filed, the corrected amounts, and the net change from the amendment. Detailed explanations for each change are required on the form. The newly found W2 must be attached to the amended return to document the updated income and withholding.

After preparation, the amended return should be mailed to the appropriate tax authority address. Taxpayers should retain copies of all submitted documents. Processing times for amended returns typically range from 8 to 12 weeks, though some cases may take longer. Taxpayers can track the status of their amended return using the “Where’s My Amended Return?” online tool approximately three weeks after submission. Electronically filed amended returns for tax year 2021 and later may also be eligible for direct deposit of any resulting refund.

Tips for Accurate Future Filing

To avoid missing W2s in future tax seasons, several steps can be taken. Maintain organized records of all employment income throughout the year, including pay stubs, which provide a running total of wages and withholdings.

Many employers offer online portals where employees can access digital W2 forms. Setting up accounts with these services ensures timely access to documents, often before mailed copies arrive. Confirming or updating mailing addresses with all current and past employers is also important to ensure W2s are sent to the correct location. Employers are required to send W2s by January 31st, so if a form has not arrived by mid-February, contact the employer directly.