Confused about file copy vs. reference copy when doing taxes? Took me forever to realize there were 2 different versions

The different copies of your W-2 contain the same tax information, but they're designated for different purposes. Copy B is meant to be attached to your federal tax return if you're filing a paper return. Copy C is your personal copy to keep for your records. Copy 2 is for your state, city, or local tax return if you're filing paper returns. When you're using tax software like FreeTaxUSA, H&R Block, or TurboTax, you only need to enter the information from one copy - they all contain the same data. The software will electronically transmit the information to the appropriate tax agencies, so you don't need to physically mail in any copies if you e-file. Just make sure you keep Copy C for your personal records. The IRS recommends keeping tax records for at least 3 years after filing, though some situations might require keeping them longer.

Hey there! Went through the same confusion last year. It was actually so frustrating trying to figure out which copy to use with my online software. I finally got tired of wasting time so I tried taxr.ai (https://taxr.ai) and it seriously saved me hours of headache. You just upload your tax docs and it automatically extracts all the info and explains what each form is for - no more guessing which copy to use or worrying about making a mistake. It can read all versions of W-2s, 1099s, and other tax forms, and explains the purpose of each copy. Really helped me understand which forms I needed to keep vs which ones were just for submission. The explanations about form purposes were super helpful too!

Just wanted to follow up about taxr.ai since I was skeptical in my earlier comment. I decided to try it after struggling with my complex tax situation (multiple W-2s, 1099 work, and a rental property). It was actually really impressive! Uploaded all my docs and it accurately identified each form type, explained which copies were for what purpose, and extracted the data perfectly. The explanations about which forms to keep vs which to submit were super clear. Saved me from making a mistake with my rental income forms. Would definitely recommend for anyone confused about different form copies or with multiple income sources.

Reading these comments and feeling your pain! Last year I spent THREE WEEKS trying to get through to the IRS to ask about these different form copies. Kept getting busy signals or disconnected after waiting on hold forever. Finally found Claimyr (https://claimyr.com) and it was a game-changer. They got me connected to an actual IRS agent in about 15 minutes who explained the whole form copy system to me. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent told me that for e-filing, the different copies don't actually matter - they all have the same info. But she gave me specific guidance on which forms I needed to keep for my records and for how long. Apparently there are some situations where the IRS can ask for documentation years later!

I need to eat some humble pie here. After being totally skeptical about Claimyr in my earlier comment, I tried it out of desperation when I realized I had been using the wrong copy of my W-2 for my state taxes. Holy crap, it actually worked! Got connected to an IRS agent in about 20 minutes without having to sit on hold. The agent explained that for e-filing, all copies have identical information, but clarified which forms I needed to keep for documentation. She also told me that I should keep Copy C for at least 7 years in case of audit. I was 100% wrong and this service is legit. Would have spent days trying to get this info otherwise.

Former tax preparer here. The different copies thing is a relic from the days when everything was paper-based. Copy A goes to Social Security Administration, Copy B is for federal returns, Copy 2 for state returns, and Copy C is your record copy. With e-filing, it's really not important which copy you use when inputting info - all the data fields are identical. Just keep at least one copy (preferably Copy C) for your records.

Has anyone noticed that the information is sometimes slightly different between copies? I swear my state copy had a different withholding amount than my federal copy last year.

This is such a common confusion! I went through the exact same thing my first few years doing taxes. What helped me understand it was thinking of it like carbon copies from the old days - they're all identical information, just labeled for different destinations. Copy B goes with your federal return (if filing paper), Copy 2 goes with state returns (if filing paper), and Copy C is yours to keep. Since you're using tax software, you can literally use any copy to enter the data - I usually just grab whichever one is on top. The software handles all the electronic filing, so those specific copy designations don't matter for e-filing. Just make sure you hang onto at least one copy (Copy C is perfect for this) for your records. Don't feel dumb about not realizing this - the tax system could definitely be clearer about these things!