W2 without withheld Federal taxes?

[Disnino]

So my dad purchased a laundromat and I work for him. He made me use quick employer forms to make the W2 for me as an employee and he pays me by Zelle with Chase. Well when you put the salary in it wants to auto fill the withheld taxes but he told me to type them in as 0 since well of course he did not withhold taxes but payed the full salary. So I'm wondering how do I now pay taxes? When I file my W2 in Turbo tax and enter all the info from my w2 in, by the end will I then get an amount of money of taxes I now have to pay as we were not withholding it through the years or should I have filled in the suggested withheld taxes on my w2 form and e filing it with 0 taxes payed is wrong?

[Mike9241]

Child employed by parents. Payments for the services of a child under age 18 who works for their parent in a
trade or business aren't subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child.

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so if your father's business is operated as a sole proprietorship or qualified partnership with mom and you are under 18 on 12/31/2022 no fica or medicare taxes is correct (box 3 through 6 on the w-2 are zero).    so you file your return reporting the W-2 as is.   don't know your wages so as to federal or state withholding maybe zero is the correct amount to be withheld. when you complete your return in Turbotax do you have a liability of more than $1,000 line 37 of the 1040.

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on the other hand, if you are not exempt from FICA, Medicare and income tax withholding your dad should run to a professional. there are extremely serious tax consequences for failure to withhold and failure to pay taxes that should be withheld.

[Disnino]

I'm 22 and made about 2740 for last year. Unfortunately it's already e filed and being processed by SSA, I saw you can amend files once accepted, is it possible we can amend it and set the 0 on it to the correct amount, or maybe they will reject the form? Ah he just told me to write 0 so I assumed that I myself would pay these taxes when I file or something along those lines 

Also it's sole proprietor and the social with Medicare total that should of been withheld should ve about 209.61

[JamesG1]

Are you saying that a W-2 for you in the amount of $2,740 in box 1 has been transmitted and accepted?  But now you would like to report the $2,740 as self-employment income subject to income tax and self-employment tax?

If that is the case, the IRS will be looking for that W-2 income to be reported on your Federal 1040 tax return.  

The IRS will also be expecting the employer to remit the $209.61 in Social Security and Medicare tax payments and to be reported and paid on a Federal 941.  In addition, other Federal and state forms are likely required to be filed.

The issuer may be willing and able to correct your W-2 with an IRS form W-2c.

I recommend that you not file a Federal 1040 tax return until the status of the W-2, W-2c and $2,740 self-employment income has been clarified.

@Disnino 

[Disnino]

No It is meant to be a W2 as I need it for FAFSA next year. It's 2740 for box 1, 3 and 5 and boxes 2, 4 and 6 are zero. I offered him to make a w2-c with the correct amount of medicare and social security percent and to send a 941 form with the amount but he told me to not worry about it and if the IRS fines him then it's fine and we will know better next year.

Meanwhile QuickEmployerForms says "SSA accepted the e-filed form on Feb 22, 2023" and emailed that IRS received it but when I try to input the digital form of the w2 into Turbo or H&R it says return canceled because the SSA doesn't have my name and SSN in their database, do I just need to wait longer for it to show up or is there some issue? 

[KrisD15]

"Meanwhile QuickEmployerForms says "SSA accepted the e-filed form on Feb 22, 2023" and emailed that IRS received it but when I try to input the digital form of the w2 into Turbo or H&R it says return canceled because the SSA doesn't have my name and SSN in their database, do I just need to wait longer for it to show up or is there some issue?"

Please clarify this, 

Do you have a Social Security Number? 

What efiled form? The W-2? 

[fanfare]

you don't have to do anything if you paid the "amount you owe" after filing 1040 showing no withholding.

there is no penalty when your final tax is below $1,000.

@Disnino 

[fanfare]

You are a dependent.

if you earned $2,740 last year and no other income, that is below the threshold of being required to file an income tax return.

if you want to file for FAFSA, your tax will be zero.

@Disnino 

[Disnino]

Yes so in quick employer forms, I put all the info for my dad's LLC, and EIN. Then I made the W2 for me as an employee, which I then e filed. The status for the e filing of that w2 says that the ssa has accepted it and the irs has received the w2. It says it was accepted Feb 22nd but at least since earlier this week it would not let me put this info in for tax return. I'm not sure if you have to wait a bit for it to go public in the ssa database or whatever for turbotax to see that it's their.

And yea it has my name and social security in this w2 that's supposedly accepted by the SSA. And I've both tried Inputting the same stuff and even letting turbotax see the actual pdf file and input that info. But maybe I'm supposed to wait for the IRS to mail the physical w2?

[Disnino]

Oh was I supposed to make a 1040 form? I thought you just enter a w2 you get from your employer and the employer sent your taxes In for you. And I'd thought the 1040 wad for self employment but maybe I got confused

[DaveF1006]

First of all, as a W2 employee, your Dad has the responsibility of withholding federal income taxes and FICA taxes. Here is an IRS link that explains this process. If he did not withhold taxes of any kind, you should have been issued a 1099 NEC instead of a W2. 

Now since you have a W2, you will need to report this on a 1040 and submit your tax payments. Turbo Tax makes it very easy for you to file your tax return.  

1. Go to www.turbotax.com
2. When you reach the landing page, go to the section where it prompts you to sign i.  Look for a link that says New to Intuit? Create an account. You need to create an  account.
3. Once you go through all the preliminary steps, you will begin your tax return.
4. The first section will ask for your information such as name, date of birth, address, social security number.
5. There is an important question within this section that asks if you are claimed as a dependent of someone else.  If your Dad claims you on his return, you will check this box. If not, leave it blank.
6. Next the program will ask all types of questions. There is an icon that you will wish to select that says HAS JOB W2 or something similar.
7. Once this online interview is complete, go to federal>wages and income>wages and salaries>form W2
8. Enter your W2 information from the W2 you created.
9. Once this has been all done, the program will automatically create a 1040 to be electronically filed to the IRS. 

i have included these steps only because i am not sure how far you got into this process. The main thing is, a properly filed tax return includes a 1040 that reports all your income whether it be from W2 or self-employment work.

REach out to us if you have any further questions.  We are here to help.

[Disnino]

Hmm yes I did fill everything out and was ready to file the taxes but at least at the time turbotax rejected it as it said that my name and ssn weren't in like the social security database like as if they did not receive the w2. But quickemployer forms says the w2 was received and accepted by the ssa and that irs received it. It says accepted Feb 22nd, maybe I have to wait a bit for it to go through and then I can file? 

Anyway I need the w2 form as I will need fafsa for college next year as I will be a dependent. Should I make a w2c form with the corrected amount of Medicare and social taxes and send in the amount in a 942? Will I not be able to use this w2 that says 0 withheld at the moment?

[JamesG1]

So it was your Federal 1040 tax return that was rejected not Quick Employer Forms?  And it was rejected because the Social Security number that you entered in the tax return is not on the Social Security database?

I presume that your Federal 1040 tax return was rejected because you have been claimed as a dependent on another taxpayer's Federal 1040 tax return?  Or did the tax return reject for another reason?  

Did your Federal 1040 tax return disclose that you were being claimed as a dependent?

In My Info down the left side of the screen, click Edit to the right of your name.  How did you answer Another taxpayer can claim me as a dependent on their tax return?

See also this TurboTax Help.

If you are able to prepare your Federal 1040 tax return with this W-2, I assume that the W-2 that you prepared can be used to prepare your FAFSA. Contact your financial aid department for further assistance.

I cannot give direction about preparing a W-2c since I am still confused as to what has happened.

@Disnino