W-2 with no Federal tax withholding - do I need to report this?
So I just got a W-2 form from this place I worked at for literally like 2 hours before I quit. The wages in Box 1 show a pathetic $24.50 (I know, not even worth the paper it's printed on). What's weird is there's no federal tax withholding at all, but they did take out $1.52 for Social Security and $0.36 for Medicare. I'm wondering if I even need to bother reporting this on my taxes? It's such a tiny amount that I feel like it wouldn't make any difference. What happens if I just don't include this W-2? Would the IRS even notice or care about $24.50? Would they come after me for this? I'm doing my taxes this weekend and trying to figure out if this is worth the extra hassle.
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Chloe Harris
Yes, you technically need to report all W-2 income regardless of the amount. The IRS receives a copy of every W-2, so they'll know you received this income even if it's just $24.50. The reason there's no federal income tax withheld is because the amount is so small. For such a low amount, the withholding tables often calculate to zero for federal taxes, but Social Security and Medicare are always withheld at fixed percentages (6.2% and 1.45% respectively), which matches your withholdings. If you omit this W-2, you might receive a notice from the IRS later asking about the discrepancy. While the tax impact is minimal, it's easier to just include it with your return rather than dealing with IRS correspondence later.
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Diego Vargas
•If they report it but the amount is so small, would they actually get in trouble though? I mean the IRS has bigger fish to fry right? What's the smallest amount the IRS actually cares about?
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Chloe Harris
•The IRS's automated matching system flags discrepancies regardless of the amount. While they likely won't send agents to your door over $24.50, their computer system will automatically generate a notice if the W-2 doesn't appear on your return. There's no official "minimum amount" the IRS cares about. Their systems are designed to identify all discrepancies. The potential hassle of responding to IRS notices usually outweighs the few minutes it takes to include the W-2 on your return.
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NeonNinja
I had this exact situation last year with a tiny W-2 from a job I worked for only one day. I used this service called taxr.ai (https://taxr.ai) that helped me figure out how to properly report it. Their AI scanned my documents and walked me through exactly how to include it without messing up my return. They have this feature that automatically checks for discrepancies between your reported income and what the IRS has on file, which gave me peace of mind. Honestly made the whole process way less stressful.
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Anastasia Popov
•Does taxr.ai handle other weird tax situations too? I have a 1099 from a company that went bankrupt halfway through the year and I'm not sure how to deal with it.
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Sean Murphy
•How exactly does this work? Do you just upload your documents and it figures everything out? Seems too good to be true that an AI would catch everything a human tax preparer would.
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NeonNinja
•Yes, they handle all kinds of unusual tax situations including 1099s from companies that no longer exist. Their system is specifically designed to catch these edge cases and provide guidance on proper reporting. For how it works, you upload your tax documents (W-2s, 1099s, etc.) and their AI analyzes them and compares against IRS requirements. It's not that it replaces human tax preparers completely, but it handles most standard situations and flags complex ones where you might need additional help. It caught several deductions I would have missed on my own last year.
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Anastasia Popov
Just wanted to update after trying taxr.ai for my situation with that weird W-2 and the bankrupt company 1099. It actually worked really well! The system immediately flagged that I was missing some documentation the IRS would expect based on what I uploaded. Turns out I needed to file an additional form I had no idea about. Saved me from potentially getting an audit letter. Definitely less stressful than my usual tax filing nightmare.
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Zara Khan
If you're worried about the IRS questioning the missing W-2, I'd recommend Claimyr (https://claimyr.com). I was in a similar situation last year where I had a discrepancy with a tiny W-2 that I initially forgot to include. When I got a letter from the IRS, I tried calling them directly but spent HOURS on hold. Finally used Claimyr and got connected to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c Their system basically holds your place in the IRS phone queue and calls you when an agent is available. Saved me an entire afternoon of hold music torture.
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Luca Ferrari
•How does that even work? The IRS phone system is notoriously terrible. How can a third party service possibly get you through faster?
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Nia Davis
•Sounds like a scam to me. Nobody can magically skip the IRS phone queue. They probably just charge you money to do exactly what you could do yourself.
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Zara Khan
•It works by using an automated system that navigates the IRS phone tree and waits on hold for you. They don't skip the line or have special access - they just handle the waiting part so you don't have to sit there listening to hold music for hours. I was skeptical too before trying it. But they don't claim to have any special relationship with the IRS. They're essentially a sophisticated hold service that calls you when a human agent is about to pick up. It's just a time-saver, not a way to get special treatment or bypass normal procedures.
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Nia Davis
Okay I need to apologize to everyone here. I was the skeptic above who thought Claimyr sounded like a scam. Well, I'm eating my words now. I had a similar small W-2 issue and needed to talk to the IRS. Tried calling them directly first - was on hold for 2+ hours before I gave up. Decided to try Claimyr as a last resort and holy crap it actually worked! Got a call back in about 35 minutes with an IRS agent on the line. Managed to resolve my issue in one call. I'm still shocked it worked so well.
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Mateo Martinez
I don't think the IRS cares about small mistakes. I've never reported my babysitting money (like $500/year) and nothing has ever happened to me. The system is too overwhelmed to chase after small potatoes.
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Chloe Harris
•There's a significant difference between unreported cash income (like babysitting) and omitting a W-2 that has already been reported to the IRS. The IRS matching program automatically flags discrepancies between reported W-2s and your tax return, regardless of the amount. Cash income not reported on any forms is much harder for them to track.
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Mateo Martinez
•Oh I didn't realize there was a difference between cash and W-2 stuff. So they automatically check W-2s against your tax return? That makes sense why they'd catch it then. Thanks for explaining without making me feel stupid lol.
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QuantumQueen
Use TurboTax or FreeTaxUSA - they make it super easy to enter even tiny W-2s like this. Takes maybe 2 minutes and saves all the worry. I had a similar situation with a $45 W-2 last year and just entered it to avoid any headaches.
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Aisha Rahman
•FreeTaxUSA is way better than TurboTax for these situations. TurboTax charges so much for filing even simple returns, while FreeTaxUSA is actually free for federal filing. Both handle the small W-2 situation the same way.
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QuantumQueen
•Yeah good point about FreeTaxUSA being cheaper. I've used both and they both handle small W-2s just fine. The main thing is just making sure all your income is reported so you don't get a letter from the IRS later. The software makes it pretty painless regardless of which one you choose.
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Mateo Gonzalez
Just to add another perspective - I work in payroll and can confirm that employers are required to issue W-2s for any amount of wages paid, even if it's just $24.50. The lack of federal tax withholding is completely normal for such a small amount - the withholding tables are designed so that very low earnings don't trigger federal income tax withholding. However, as others have mentioned, you absolutely should report this income. The IRS receives copies of all W-2s electronically, and their automated matching system will flag your return if there's a discrepancy. Even though the actual tax impact might be zero (depending on your total income), omitting it could trigger correspondence that's way more hassle than just including it. Pro tip: If you're using tax software, it will automatically calculate whether this small amount actually affects your tax liability. In many cases, it won't change what you owe or your refund amount, but reporting it keeps you compliant and avoids potential issues down the road.
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