Is this your first time filing taxes? Are you a dependent? You may be wondering, what happens if I am a dependent filing taxes and only file one of my 2 W2s? Luckily, you don't have to worry, too much. The IRS has plenty of tools that can help you correct your mistake. Keep reading to learn about filing W2 forms and correcting your mistake, whether you're a dependent or not.
If You Forget
Filing W2 forms doesn't have to be complicated, but it can be easy to forget one. If you switched jobs in the middle of the year, you should get a W2 from your current and former employers. If you work multiple part-time jobs, you'll also have a couple of W2s. Luckily, you don't have to worry too much if you forget to file one of them.
At first, nothing will happen. However, you will need to correct your mistake. The easiest way to do that is to file an amended return.
File An Amended Return
If you make any mistake on your tax return, you'll need to file an amended return. The new return will allow you to correct any big issues with your taxes, like income. Not reporting one of your W2s can affect your income and thus your income taxes. You will need to fill out Form 1040-X, which is used for individual income tax amendments.
When filing the return, you will need to attach all of your tax forms to it. Then, you will need to mail the form to the IRS so that they can process it. To qualify for a refund, you should mail your Form 1040-X within three years of when you filed the original return.
If You Owe More Taxes
Once you file your amended return, you can determine if you will owe more in taxes. That will usually be the case when you originally forgot to file multiple W2s. Assuming you do owe more in taxes, you will need to pay those balances. Of course, you'll need to pay federal taxes but depending on where you live, you may need to pay more in state or city taxes.
So What happens if I am a dependent filing taxes and only file one of my 2 W2s? Then, should follow the same steps.
Pay Any Balances and Penalties
If you paid some income tax when you originally filed, you won't need to repay that amount. However, you will need to pay the remaining amount that you owe. Also, the IRS charges interest on that amount until you pay it off. Now, you can avoid this by filing for an extension. Once the extension ends, you'll need to start paying interest.
If you wait longer, you will have to pay even more in taxes and penalties. As soon as you know you will have to pay more, pay as much as you can to avoid more charges.
If You Paid Too Much
While not common, you may end up paying too much in taxes, and your W2 might bring that down. That can happen if the employer withheld a lot of taxes or if you didn't make that much from that job. In this case, you won't owe penalties, and you won't have to pay more in taxes. You may get a refund, and you can request that refund like you would if you filed all of your taxes at first.
If you don't want to deal with the filing yourself, you can ask an accountant to help. Then, you can still get the money you deserve once you correct your taxes.
The IRS Knows
One of the good and bad things about filing taxes in the US is that the IRS is good about knowing who made what. If your employer created your W2 online, they probably sent it to the IRS already. So the IRS will know what you made and what you owe in taxes. Even if you don't remember later that you forgot to include a W2, the IRS can contact you.
If you're a dependent, you may wonder, what happens if I am a dependent filing taxes and only file one of my 2 W2s? It doesn't matter if you're a dependent or not; the IRS will let you know if you forgot something. Always make sure that it is the IRS contacting you. Most of the time, you can expect a piece of mail, though you may get a call. Be sure to contact the IRS directly if you suspect a scam.
How To Remember To File Both
Filing W2 forms can be stressful, especially if it is your first time. It can be even worse if you remember later that you forgot to include one of your W2s when you filed your taxes. In the future, you can do a few things to prevent yourself from forgetting. Consider these options below;
Organize Your Files
As soon as you get your first W2, find a safe place to store it and your other tax forms. Then, you can add your other W2 to the file when you receive it. What happens if I am a dependent filing taxes and only file one of my 2 W2s? You don't have to wait until you're an adult to organize your taxes. Start early and get in the habit.
Plan Your Tax Filing
You can also create a plan for your taxes filing in 2021. Find a time when you have a few hours to go through all of your forms. That way, you can make sure you have all of your forms, and you can go over any W2 filing instructions. Whether you're a dependent or not, planning when to file can help you avoid missing the deadline. That can keep you from stressing and rushing your taxes.
The Key To Filing W2 Forms
Filing W2 forms is common for anyone who works as an employee. Many employees will have to file multiple W2s because of having multiple jobs or switching companies. If you have multiple forms and forget one, it's not the end of the world. You'll need to file an amended return and pay any tax penalties. Do you have W2 employees? Start by creating W2 forms for them so that they don't have to stress about filing their taxes.
Check out the W2 FAQ section for more detailed information.