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Point of filing a W2?

Why do we have to file a W2 when the federal government already taxes us on the money we make and sees how much money we make. Why do we have to report it to the federal government again?

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  • Shay
    Lv 7
    2 months ago
    Favourite answer

    The taxes taken from your check is an ESTIMATE.

    Using your W-2 to file a Tax Return is PROOF that it was the RIGHT estimate.

    If the estimate was wrong - you would either owe more taxes or get a tax refund.

    Things like having multiple jobs or having other deductions or dependents can change your tax situation enough that just the taxes taken out on the paycheck may not have been the right amount.

    Taxes in the US are very complicated  and the only way to be sure you have paid the right amount of taxes for the income you have earned is to use your W-2 and other income documents to file a tax return and find out.

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  • 2 months ago

    Not all income is reported on a W2... You are filing to tell the government all the sources of income you had.. not just W2. You also have to file to tell how many dependents etc.

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  • 2 months ago

    {sounds like a rant} ...To generate an accurate form 1040.  You may have other W-2 income, 1099 income, misc income, etc and it all needs to be added up for the process to work correctly. You may owe even more, or be due a refund. 

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  • 2 months ago

    You don't file a W2, you receive one. You file a form 1040. Those taxes withheld are an ESTIMATE based on ly on an individual job. The feds do not take that money out, your employer takes it out and sends it to them. They do not monitor throughout the year how much you are making and what is being withheld.

    • SumDude
      Lv 7
      1 month agoReport

      all true ... but back in the old days when one filed a paper 1040 the W-2 (s) had to be attached (front and center !). - old accountant

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  • NA
    Lv 7
    2 months ago

    Because a) it may not be your only income and b) the withholding on the W-2 is an estimate.  For the federal government, it almost never comes out exactly right.

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  • 2 months ago

    They may not have it on record yet

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  • 2 months ago

    The tax return is basically a reconciliation of all of your income and withholding.  That withholding amount is compared to your actual tax liability and a refund or balance due is calculated.

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