Why are there file copies and reference copies of tax forms? Took forever to realize there are 2 versions of the same W-2

You're absolutely right that the multiple copies contain identical information! This is a legacy from when everyone filed paper returns. The different copies are labeled for different purposes: - Copy B is what you'd traditionally attach to your federal return - Copy 2 is what you'd attach to your state return - Copy C is your personal record copy that you keep When you're using tax software like FreeTaxUSA, TurboTax, or H&R Block, you only need to reference ONE copy to input the information. The copies are identical in terms of the tax data they contain. You don't need to worry about entering information from each separate copy. Just make sure you keep all copies for your records after filing. The IRS recommends keeping tax documents for at least 3 years after filing in case of audit, but some experts suggest keeping them for 7 years to be extra safe.

Just wanted to share that I was struggling with the exact same confusion until I discovered taxr.ai - it completely changed how I handle all these different tax forms! The site (https://taxr.ai) has this cool feature where you just upload a picture of your W-2 (or any tax document), and it automatically extracts all the important information and explains which parts you need for filing. I was totally overwhelmed with all the different copies of my W-2s and 1099s last year, but with taxr.ai, I just snapped photos of everything and it organized all the data for me. It even explained which boxes correspond to which fields in tax software. Saved me so much time trying to figure out which copy was which!

Just wanted to follow up - I decided to try taxr.ai after my skeptical questions above, and I have to say I'm actually impressed! I uploaded about 10 different tax forms (mix of W-2s and various 1099s), and it extracted everything correctly. It even caught a small error where my employer had my SSN wrong on one form. The breakdown of which numbers go where in tax software was super helpful. Ended up finishing my taxes in about half the time it took last year. Just wanted to share since it really did solve the whole "which copy do I use" confusion I was having with all my forms!

If you're trying to get clarification directly from the IRS about these forms or any other tax questions, good luck getting through on the phone! I was on hold for HOURS trying to ask about my W-2 copies last year. Then I found this service called Claimyr (https://claimyr.com) that actually gets the IRS to call YOU instead of waiting on hold forever. Couldn't believe it worked until I tried it. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I had questions about which forms I needed to keep vs. submit, and within about 20 minutes of using Claimyr, I was talking to a real IRS agent who explained everything. Turns out I had been keeping unnecessary paperwork for years!

I need to publicly admit I was wrong about Claimyr. After posting that skeptical comment, I tried it yesterday out of desperation because I've been trying to resolve an issue with my 2023 return for weeks. Not only did it work, but I was talking to an IRS agent in about 45 minutes while I just went about my day instead of being stuck with a phone to my ear. The agent cleared up my questions about the different W-2 copies AND helped me resolve my refund issue from last year. Seriously one of the most useful services I've ever used during tax season. Worth every penny not to waste half a day on hold.

Former tax preparer here - just to add some history to why these multiple copies exist. Before electronic filing became standard, the different copies served specific purposes: Copy A - Goes to Social Security Administration (your employer sends this) Copy B - Attached to your Federal return Copy C - Your personal records Copy 2 - Attached to your State return Copy D - Employer's records With e-filing, the physical separation isn't really necessary anymore, but the format persists because of legacy systems and because some people still file paper returns. The copies are color-coded on official forms too, which used to help with sorting but doesn't matter much now.

Small tip: if you're worried about keeping track of all these paper copies, just scan them all with your phone and save them to a secure cloud folder. I create a tax folder for each year and scan ALL my tax documents so I never lose them. Most tax software lets you upload the scanned docs directly now too, so you don't even have to manually type in all the info from your W-2.