The W2 is a single page with your income and tax information

A W2 form is a single sheet of paper (or PDF) that your employer sends you by January 31st each year. It shows how much you earned, how much tax was withheld from your paychecks, and other details the IRS needs to match against your tax return. The form has boxes numbered 1 through 20, and each box holds a specific piece of information about your work and taxes for that year.

You'll receive copies: one to keep for your records, one to send with your federal tax return, one for your state (if your state has income tax), and sometimes one for your local tax authority. Your employer keeps a copy too. The W2 is the document you need to file your taxes — you cannot file without it, and you cannot claim income that is not reported on a W2 your employer filed with the IRS.

Key Takeaways

  • Box 1 shows your taxable wages — the amount you actually owe income tax on after certain deductions.
  • Box 2 shows federal income tax already withheld from your paychecks, which reduces what you owe when you file.
  • Boxes 3 and 5 show Social Security and Medicare wages and taxes, which fund those programs separately from income tax.
  • The top section lists your employer's name and address and your name, address, and Social Security number so the IRS can match the form to your tax return.
  • State and local tax information appears in boxes 19 and 20, and only if you worked in a state or locality that collects income tax.

The top section: your name, employer, and identifying numbers

The very top of the W2 shows your employer's name, address, and Employer Identification Number (EIN) — a nine-digit number that identifies the business to the IRS. Below that is your name, address, and Social Security number. Make sure this information is correct. If your name or Social Security number is wrong, the IRS will not match the W2 to your tax return, and you may face delays or have to contact the IRS to fix it.

If you moved during the year, your address on the W2 may not match your current address. That is usually fine — the IRS uses your Social Security number to match forms, not your address. But if you moved and changed your name (through marriage, for example), contact your employer to make sure they have your current legal name on file before they send the W2 to the IRS.

Box 1: taxable wages — what you owe tax on

Box 1 shows your taxable wages, which is the amount of income the IRS says you owe federal income tax on. This is not the same as your gross pay. Taxable wages are your gross pay minus certain pre-tax deductions — mainly contributions to a traditional 401(k), health insurance premiums, and dependent care accounts. If you contributed to any of these, Box 1 will be lower than your actual earnings.

This is the number you use to calculate your federal income tax liability when you file. If you had two jobs, you will receive two W2s, and you add the Box 1 amounts from both to get your total taxable wages for the year.

Box 2: federal income tax withheld

Box 2 shows how much federal income tax your employer took out of your paychecks throughout the year. This is money that already went to the IRS, so it reduces what you owe when you file your return. If the amount withheld is more than what you actually owe, you get a refund. If it is less, you owe the difference.

The amount withheld depends on what you claimed on your W4 form when you started the job. If you claimed too many dependents or exemptions, too little tax was withheld, and you may owe money at tax time. If you claimed too few, too much was withheld, and you will get a refund. You can adjust your W4 at any time during the year to change how much is withheld from future paychecks.

Boxes 3 and 5: Social Security and Medicare wages and taxes

Box 3 shows your Social Security wages — the amount of your pay that is subject to Social Security tax. Box 4 shows how much Social Security tax was withheld. Box 5 shows your Medicare wages, and Box 6 shows Medicare tax withheld. These are separate from federal income tax and fund those programs directly.

Social Security and Medicare taxes are calculated on most of your earnings, but there are limits. Social Security tax applies only to earnings up to a certain amount each year (this limit changes annually). Medicare tax applies to all earnings with no cap. If you earned more than the Social Security wage base, Box 3 will be lower than your actual pay, but Box 5 (Medicare wages) will reflect your full earnings. You do not need to do anything with these numbers — they are informational and show what was already taken from your paychecks.

Boxes 19 and 20: state and local income tax

If you worked in a state that collects income tax, Box 19 shows state income tax withheld, and Box 20 shows your state taxable wages. If you worked in a locality (city or county) that collects income tax, those amounts appear in boxes further down the form. If you worked in a state with no income tax (like Texas, Florida, or Nevada), these boxes will be blank or show zero.

You use the information in Box 19 and Box 20 when you file your state tax return. Some states have different rules than the federal government about what counts as taxable income, so your state taxable wages may differ from Box 1. If you worked in more than one state during the year, you will receive a W2 from each employer, and you may have to file returns in multiple states.

Other boxes: dependent care, education, and employer-provided benefits

Box 12 contains codes and amounts for certain pre-tax benefits and deductions. Common codes include D (401(k) contributions), E (health insurance premiums), and F (dependent care account contributions). These amounts were subtracted from your gross pay before calculating your taxable wages in Box 1, so they reduce your tax liability.

Box 13 has checkboxes for whether you are a statutory employee, a full-time student, or have other special status. Box 14 is a catch-all for other information your employer wants to report — sometimes state disability insurance, union dues, or other items specific to your job or state. These boxes are informational and do not directly affect your federal tax calculation, but you should review them to make sure they are accurate.

What to do if something on your W2 looks wrong

If you spot an error on your W2 — a wrong name, Social Security number, or amount — contact your employer's payroll or human resources department right away. They can issue a corrected W2 (called a W2-c) and file it with the IRS. You should not file your tax return until you have the correct W2.

If you cannot reach your employer or they refuse to correct it, you can file Form 4852 (Substitute for Form W-2) with the IRS, but this is complicated and often triggers an audit. It is much faster to get your employer to issue a corrected form. Keep copies of all W2s you receive, even if you think one is wrong — you may need them to prove what you earned.

Frequently Asked Questions

Do I need to keep my W2 after I file my taxes?

Yes. Keep your W2 for at least three years in case the IRS audits your return. The IRS can go back further than three years in some cases, so keeping them longer is safer. Store them with your tax return and supporting documents.

What if I never received my W2 by February?

Contact your employer first — it may have been mailed to an old address. If your employer cannot locate it or says they sent it but you did not receive it, you can call the IRS at 800-829-1040 and ask them to contact your employer on your behalf. You can also file your return using Form 4852 if you know your income amounts, but this may delay your refund.

Can I file my taxes without my W2?

No. The IRS requires you to report all income on your tax return, and your employer has already reported your W2 income to the IRS. If you file without it, the IRS will notice the discrepancy and will contact you. It is better to wait for your W2 or get a corrected copy from your employer.

Why is my Box 1 amount different from my total pay?

Box 1 is taxable wages after pre-tax deductions like 401(k) contributions, health insurance, and dependent care accounts. Your actual gross pay (before any deductions) is higher. The difference is the money you chose to set aside for those benefits, which reduces your federal income tax.

Do I need to report my W2 to my state if I moved?

If you moved to a different state during the year, you may owe taxes to both your old state and your new state. Most states have rules about part-year residents. You will need your W2 information to file in both states, and you may be able to claim a credit on one return for taxes paid to the other. Check your new state's tax authority website for part-year resident rules.