Quote Quoting bugles
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Quick question, Is there any issue with turning in a W2 form that shows a larger income than I was actually paid? I would file /pay all taxes on the larger amount to the IRS. This would be for purposes of a loan.....is there any problem as long as the taxes are paid? Any info would be greatly appreciated.
Thanks
What you would be doing is committing fraud against the lender by lying about your income in order to get the loan. That’s a criminal act and would also allow the lender to rescind the loan contract — and that could mean loss of whatever was pledged as collateral for the loan. You are also technically committing perjury on the tax return. Note that you have a problem here in that the larger salary should also mean larger Social Security and Medicare taxes withheld and paid by the employer. If the employer has not done that, you would cause significant problems for the employer, too. If your employer is not a company that you own, this would likely end up with you getting fired.

Note that if you do not have sufficient income to qualify for the loan, that suggests you would have trouble paying that loan.

All the way around, this is a very bad idea.