I am in the process of getting approved for a mortgage. My w2 income does not match the income on my 1040 form. The 1040 income is less than the w2. Is this something that they underwriter will question? Or will the underwriter just assume that I did not report all of my w2 income when I filed the 1040 with IRS. The w2 is from a job which I am no longer employed. Since this job, I have been employed at another company in the same job industry for 1 yr. My current job's income from last yr. was also not reported on my 1040. But this is because I had only worked there for 2 months before filing tax return. Are there any potential serious here?
the first line of the 1040 form should equal all w-2s for the calendar year. If not you will get a notice from the irs.
Banks don't look at w-2s. They look at tax returns and personal financial statements.
if the w2 that I provided to the bank does not match the tax return that they will order, will this be an issue that the underwriter will question? my w2 is more than 1040.
Thank you so much for your info.
@Jasmine Claye - I don't understand why all the income from your W-2 is not the same as what is on your 1040. Even if you started the job 12-1-13 that month of income would generate a W-2 and would be reported on your 1040 per the IRS. I would contact a tax professional asap. The IRS gets your W-2 and if the numbers don't match it could trigger an audit.
You might be looking at the bottom line instead of the top line. Taxable income will be lower than earned income because of deductions. Your W2's WILL match your wage income line on your 1040 or the IRS will contact you.
If it does not match, then I would suggest you hire an accountant and have him or her do your taxes from now on. Also, you might want to file an amendment and file the correct amount of taxes.
This happened to me when I was around 18. I was not provided a 1099 until apr or may and I had already filed my taxes. I said 'screw it' and never amended my taxes. took 3 years but eventually the IRS contacted me and demanded I pay, plus 12% interest for all the years I hadn't paid it. I paid up quick and learned how serious the gov't is about collecting money. I was only teen at the time so it's good to learn those lessons early.
On the other hand, if taxes were withheld and you didn't claim that w2..the IRS could owe you money.
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