A W-2 is the form your employer sends you each January showing how much you earned and how much tax was withheld

The W-2 form (officially called the "Wage and Tax Statement") is a document your employer is required to mail to you by January 31 each year. It reports your total wages for the previous calendar year and lists all federal, state, and local income taxes your employer deducted from your paychecks. You use this form to file your income tax return with the IRS.

Your employer also sends a copy to the IRS and to your state tax agency. The IRS uses it to verify that the income you report on your tax return matches what your employer reported. If the numbers don't match, the IRS will contact you.

You receive a W-2 if you worked as an employee for a company or organization. If you were self-employed or worked as an independent contractor, you typically receive a different form called a 1099 instead.

Key Takeaways

  • Your employer must send you a W-2 by January 31 showing your wages and tax withholdings for the previous year.
  • The W-2 has six copies: you keep one, your employer keeps one, and copies go to the IRS, your state, your city (if applicable), and sometimes your local tax agency.
  • The form shows gross wages, federal income tax withheld, Social Security tax withheld, Medicare tax withheld, and other deductions like health insurance premiums.
  • You need your W-2 to file your federal and state income tax returns; you cannot file without it.
  • If your employer does not send you a W-2 by early February, contact them or call the IRS at 800-829-1040 to report it.

The boxes on a W-2 and what they mean

A W-2 has numbered boxes, each reporting a different piece of income or tax information. The most important ones are:

Box 1 (Wages, tips, other compensation): Your total taxable wages before any deductions. This is the number you use to calculate your federal income tax.

Box 2 (Federal income tax withheld): The total federal income tax your employer took out of your paychecks during the year. If this number is too low, you may owe money when you file. If it is too high, you may get a refund.

Boxes 3 and 5 (Social Security and Medicare wages): These show the income subject to Social Security and Medicare taxes. They are usually the same as Box 1, but can differ if you had certain types of income or deductions.

Boxes 4 and 6 (Social Security and Medicare tax withheld): The amounts your employer deducted for these payroll taxes. These are fixed percentages and do not change based on your tax bracket.

Boxes 12a through 12d (Other income and deductions): These report things like contributions to a 401(k), health insurance premiums, or dependent care expenses. The letter code in the box tells you what type of deduction it is.

How W-2 withholding works

When you start a job, you fill out a W-4 form that tells your employer how much federal income tax to withhold from each paycheck. Your employer uses this form to calculate the withholding based on your expected annual income, number of dependents, and other factors.

The goal is to withhold roughly the right amount so that when you file your tax return, you either owe very little or get a small refund. If you withhold too much, you give the government an interest-free loan all year. If you withhold too little, you may owe a large amount in April.

You can change your W-4 at any time during the year if your situation changes — for example, if you get married, have a child, or take a second job. Updating your W-4 adjusts your withholding going forward but does not change what is already on your W-2 for the year.

What to do if you do not receive your W-2

Your employer must send your W-2 by January 31. If you do not have it by mid-February, contact your employer's payroll or human resources department first. Sometimes the form is mailed to an old address if your employer's records were not updated.

If your employer cannot locate it or refuses to send it, you can file Form 4852 (Substitute for Form W-2) with the IRS to report your income based on your own records — pay stubs, bank deposits, or other documentation. You can also call the IRS at 800-829-1040 to report a missing W-2. The IRS can contact your employer and may impose penalties if they failed to send the form.

Do not file your tax return without a W-2 unless you have already filed Form 4852 with the IRS. Filing without reporting income your employer reported will trigger a mismatch notice.

W-2 versus 1099: when you get each form

The type of form you receive depends on how you worked and who paid you. An employee who works for a company receives a W-2. The employer withholds taxes and pays half of your Social Security and Medicare taxes.

An independent contractor or self-employed person receives a 1099 form instead. The payer does not withhold taxes, and you are responsible for paying all of your own income tax and self-employment tax (Social Security and Medicare). You typically file a Schedule C with your tax return to report self-employment income.

Some people receive both a W-2 and a 1099 in the same year — for example, if they worked as an employee for part of the year and did freelance work for part of the year. Both forms must be reported on your tax return.

How to use your W-2 to file your tax return

When you file your federal income tax return (Form 1040), you report the income from Box 1 of your W-2. You also report the federal tax withheld from Box 2. The IRS compares these numbers to what your employer reported. If they match, your return processes normally.

If you have multiple jobs, you receive multiple W-2s and must report income from all of them. If you are married and both you and your spouse worked, you each report your own W-2 on a joint return.

You also use your W-2 to file your state and local income tax returns. Each state has different rules about which income is taxable, so your state return may look different from your federal return even though both use the same W-2.

Frequently Asked Questions

Do I need to keep my W-2 after I file my tax return?

Yes. Keep your W-2 for at least three years in case the IRS audits your return. The IRS can go back up to seven years in some cases. Store it with your tax return and supporting documents.

What if the W-2 my employer sent me has wrong information?

Contact your employer immediately and ask them to issue a corrected W-2, called a W-2c. Your employer must send the corrected form to you and the IRS. Do not file your tax return until you have the correct W-2.

Can I file my tax return before I receive my W-2?

No. You need your W-2 to file an accurate federal return. If your employer is late, wait to receive it. If it does not arrive by early February, contact your employer or the IRS.

Why is my W-2 different from my last paycheck?

Your W-2 shows your total income and withholdings for the entire year, not just your final paycheck. It includes all wages, bonuses, and deductions from January through December. Your last paycheck may also include unused vacation or sick time paid out.

Do I need my W-2 to file if I did not earn much money?

Even if your income is very low, you still need your W-2 to file. The IRS requires your employer to report all wages, and you must report all income on your return, regardless of the amount.