4 W-2 Form Scams To Watch Out for in 2026

Ashley DonohoeWed, February 18, 2026 at 1:12 PM UTC

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If you’re an employee, you’ll need your W-2 form to report your income, tax withholdings and other important details when you file your return. Unfortunately, this widely used form is the target of multiple scams that can cost you money, lead to identity theft or even cause legal issues if you fall victim. Here are four common W-2 form scams you should watch out for this year.

Phishing Schemes

While electronic W-2 forms are legitimate, some scammers impersonate employers and send phishing emails claiming that your form is ready to download. They’ll often direct you to a page that may look like your company’s employee portal and steal your login details. That scammer could then access your direct deposit details and other sensitive data.

Another phishing scheme involves an impersonator asking you or your employer to verify W-2 form details or send a copy "for their records." The IRS has warned that scammers may use the information provided to commit identity theft or file fraudulent returns.

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To stay safe, avoid clicking questionable links or handing over your login credentials or W-2 form information to potential scammers. Instead, handle any requests directly with your employer and let them know immediately if you suspect a scam.

Overstated Withholding Schemes

The IRS has cautioned taxpayers about social media posts that instruct them to lie about their W-2 information when filing a return. These posts typically suggest reporting larger federal or state tax withholdings — and sometimes even inflating income — to generate a larger refund.

While this scheme tempts you with a bigger refund, the IRS will likely reject your return when its systems detect that your income and withholding numbers don’t match employer records. In more serious cases, knowingly submitting false information could lead to penalties or criminal charges. Instead, report all information accurately and seek legitimate ways to reduce your tax bill.

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Identity Theft Fraud

An identity thief might access your W-2 form and other personal information, which they can then use to file a tax return in your name and steal your refund. In some cases, the thief may also fabricate business income, claim credits you don’t qualify for or otherwise alter return details to maximize the fraudulent refund.

To protect yourself from trouble, look for common signs, such as a missing W-2, unexpected IRS notices or a rejection when you file your return because one has already been submitted under your Social Security number.

If this happens to you, follow this identity theft guide, including filing Form 4506-F to get a copy of the fraudulent return.

Tax Preparer Abuse

Some unethical or “ghost” tax preparers make up W-2 form information — sometimes without your knowledge — promising you’ll receive a big refund or qualify for certain tax breaks. They typically won’t sign your return as the paid preparer and may even steal your tax refund.

The IRS has repeatedly warned about these schemes. In one press release, the agency detailed how a “ghost” tax preparer in Georgia received prison time and over $540,000 in restitution for this type of fraud. Victims can be left facing penalties, interest and possible criminal exposure if false information was submitted in their name.

To protect yourself, always verify your tax preparer’s credentials, ensure they sign your return and include their Preparer Tax Identification Number. If a preparer refuses to answer questions, pressures you to falsify information or won’t sign the return, walk away.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.

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Source: “AOL Money”