The W-2 and W-4 Explained

It's the "W" or something that makes them easily confused. Anyway, the short story is a W-4 is what you fill out when you start a job so that your employer knows how much to withhold for you. A W-2 is the form you get at the end of the year that is used to report taxable wages and withheld taxes. By now, you should've received all your W-2's. Check out my previous post "No W-2? No Problem!" if you still haven't received yours and need to know how to file.

Now that you know what the difference is between the two, how do you read those darn things? Sharon over at That Baby Boomer Generation has conveniently answered both these questions already. See her posts on reading your W-2 and reading your W-4.

No W-2? No Problem....? Wait, what?

When I was in college and moving around a lot it wasn't uncommon for me to not receive all my W-2's. Thinking nothing of it, I would file my return without them. Luckily back then I wasn't making enough money for this to be a huge issue.

However, if I did this now, it would be a huge issue. Here's why...

When your employer mails your W-2 it doesn't just go to you. A copy also goes to the IRS. Once April 15th passes, the IRS starts matching up returns to these company-filed W-2's. If the IRS finds W-2's that you didn't report, it will hit you with penalties and interest on that unreported money.

So, what do you do if you don't get all your W-2's? First, understand that it's your responsibility to make sure all of them get to you. If one is missing, contact your employer and ask for a replacement. They are required by law to provide you with these.

If you cannot get a replacement for some reason, use form 4852 to substitute for a W-2. To fill out this form, use your most recent check stub or that last check stub for the filing year you're doing. (Check out this article to understand how to read your paystub) Also, provide the IRS (it can be written) with as much employer info as possible and what you did to get your W-2. Attach this to your return.

Still unclear about making a W-2 replacement or having problems getting a replacement W-2? Sharon Raines did a good post on filing without a W-2.