Where Do I Enter My Dependents W2?

A W-2 form reports an individual’s annual wages and taxes withheld. Employers issue these forms to employees by January 31st each year, with copies also sent to the IRS and Social Security Administration. A dependent is someone other than the taxpayer or spouse who relies on another for financial support, often including children or relatives meeting IRS criteria. Dependents, particularly those with part-time or seasonal jobs, commonly receive their own W-2 forms. This article explains how to handle these W-2 forms when preparing a tax return.

Understanding a Dependent’s W-2

Dependents receive a W-2 form for earned income from employment, even from part-time or summer work. The W-2 reports their total wages and taxes withheld from their paychecks. Several boxes on the W-2 form contain important information for tax filing.

Box 1, labeled “Wages, Tips, Other Compensation,” shows total taxable wages for federal income tax, including regular wages and bonuses. Box 2, “Federal Income Tax Withheld,” indicates the total amount of federal income taxes withheld from the dependent’s pay. These amounts represent the federal taxes paid by the dependent throughout the year.

Further down the W-2, Box 16, “State Wages, Tips, etc.,” reports wages subject to state income taxes, and Box 17, “State Income Tax,” shows state income tax withheld. If applicable, Boxes 18, 19, and 20 detail local wages, local income tax withheld, and locality name, respectively. A dependent’s income may impact filing requirements or tax benefits, so identify these wage and tax withholding amounts when reviewing their W-2.

Entering W-2 Information on Your Tax Form

When preparing your tax return, accurately transfer the information from your dependent’s W-2. If using online tax preparation software, you typically navigate to a W-2 input section, often under “Income” or “Wages.” The software prompts you to enter information from each box, such as Box 1 for wages and Box 2 for federal tax withheld. Many programs also offer options to import W-2 data directly from employers or by uploading a PDF or image, simplifying the process.

For paper Form 1040 filers, wages from Box 1 of each W-2 are combined and reported on Line 1a of Form 1040. Total federal income tax withheld from Box 2 of all W-2s is entered on Line 25a of Form 1040. State or local taxes withheld are reported on corresponding state or local tax forms, which may feed into the federal return or be filed separately.

A dependent’s W-2 information might be included on your tax return in certain scenarios, such as when claiming tax credits like the Earned Income Tax Credit. If a dependent child’s income consists only of interest and dividends below certain thresholds, parents may elect to include it on their own return using Form 8814. For most earned income, if a dependent meets their own filing requirements based on their gross income, they will typically file their own tax return.