A W2 is a tax document your employer sends you showing how much you earned and what taxes were withheld

The W2 form (officially called the "Wage and Tax Statement") is a record of your annual income and the federal, state, and local taxes your employer deducted from your paychecks. Your employer is required by law to send you a copy by January 31st each year, and they also send copies to the IRS and your state tax agency. You use the information on your W2 to file your income tax return.

The form shows your gross wages (what you earned before deductions), how much was withheld for federal income tax, Social Security tax, Medicare tax, and sometimes state and local taxes. If you worked for multiple employers during the year, you'll receive a separate W2 from each one. The W2 is essentially proof of your income and proof that your employer already sent tax money to the government on your behalf.

Key Takeaways

  • Your employer must send you a W2 by January 31st showing your annual wages and all taxes withheld from your paychecks.
  • The W2 includes federal income tax, Social Security tax, Medicare tax, and sometimes state and local tax withholdings.
  • You need your W2 to file your federal and state income tax returns each year.
  • If you worked for multiple employers, you'll receive a separate W2 from each one and must report all of them when you file taxes.
  • The IRS and your state tax agency receive copies of your W2 directly from your employer, so the income reported must match your tax return.

The boxes on your W2 and what they mean

A W2 has numbered boxes, each containing specific information. Box 1 shows your taxable wages for federal income tax purposes. Box 2 shows federal income tax withheld. Boxes 3 and 5 show Social Security wages and Social Security tax withheld. Boxes 5 and 6 show Medicare wages and Medicare tax withheld. These are the main numbers you'll use when filing your return.

Boxes 12 and 20 may contain additional information depending on your situation — for example, if you contributed to a 401(k), that amount appears in Box 12. Box 19 shows state income tax withheld, and Box 20 shows the state where you worked. If you had taxes withheld for multiple states, you may receive multiple W2s or a single W2 with information for each state listed separately.

Your employer's name, address, and tax ID number appear at the top, and your name, address, and Social Security number appear in the employee section. Make sure all your personal information is correct — if your name or Social Security number is wrong, contact your employer immediately to request a corrected form.

When you receive your W2 and what to do with it

Your employer must mail or deliver your W2 by January 31st. Many employers now provide W2s electronically through a secure portal, while others mail paper copies. If you don't receive your W2 by early February, contact your employer's payroll or HR department to ask for it. If your employer goes out of business or you can't locate them, you can contact the IRS for help.

Once you have your W2, keep it with your tax documents. You'll need the information from it to file your federal income tax return, and you may also need it to file your state return. If you're filing electronically, you can type the numbers directly from your W2 into tax software. If you're filing by mail, you may need to attach a copy of your W2 to your return, depending on your state's requirements.

W2 vs. 1099: the difference

A W2 is for employees; a 1099 is for independent contractors and self-employed people. If you receive a W2, your employer withholds taxes from your paychecks and handles payroll taxes. If you receive a 1099, you are responsible for paying your own taxes, usually through quarterly estimated tax payments. You cannot receive both a W2 and a 1099 from the same employer for the same work in the same year.

The tax treatment is different too. W2 employees can deduct certain work expenses only if they itemize deductions on their tax return. Self-employed people who receive 1099s can deduct business expenses directly, which often results in a lower taxable income. If you're unsure whether you should be classified as an employee (W2) or contractor (1099), the IRS has guidelines based on how much control your employer has over your work.

What happens if your W2 is wrong

If your W2 contains errors — wrong income amount, wrong tax withholding, wrong personal information — ask your employer to issue a corrected W2 (called a "W2-c"). Your employer has until January 31st of the following year to send you a corrected form. You should file the corrected W2 with the IRS if you've already filed your tax return with the incorrect information.

If your employer refuses to correct the form or you can't reach them, you can file your tax return with the correct information anyway. The IRS will eventually match your return against the W2 they received from your employer. If the numbers don't match, the IRS will contact you. Having documentation of your actual income (pay stubs, bank deposits, or other records) helps prove your case if there's a discrepancy.

Keeping your W2 for records

Keep your W2 for at least three years after you file your tax return. The IRS can audit your return up to three years back, and you may need your W2 to prove your income if you're applying for a loan, renting an apartment, or dealing with other financial matters. Many people keep W2s for seven years or longer, which is a safe practice.

If you lose your W2, you can request a copy from your employer or contact the IRS. The IRS can provide you with a transcript of your tax return, which includes income information from your W2, though it's not the same as the original form. Storing copies digitally (scanned or photographed) is a good backup in case the paper copy is lost or damaged.

Frequently Asked Questions

What if I worked for multiple employers during the year?

You'll receive a separate W2 from each employer. When you file your tax return, you must report income from all W2s. Add up the federal income tax withheld from each form and report the total on your return. The IRS receives copies of all your W2s, so they'll know if you leave one out.

Can I file my taxes without my W2?

You shouldn't file without it. Your W2 contains the exact income and tax withholding amounts the IRS expects to see. If you file without it and the numbers don't match what your employer reported, the IRS will contact you. If you haven't received your W2 by mid-February, contact your employer or the IRS before filing.

Why is my W2 income different from what I thought I earned?

Your W2 shows gross wages (before deductions), but you may be thinking of your take-home pay. Deductions for health insurance, 401(k) contributions, and other benefits reduce your paycheck but may not reduce your taxable wages on the W2. Some deductions are pre-tax (they lower your W2 income) and others are post-tax (they don't). Your pay stub explains which is which.

Do I need to send my W2 to the IRS?

No. Your employer sends the IRS a copy directly. You keep your copy for your records and use it to file your tax return. You don't mail your W2 to the IRS unless you're filing by paper and your state requires it attached to your return.

What if my employer never sends me a W2?

Contact your employer's payroll department first. If they don't respond by mid-February, call the IRS at 1-800-829-1040. The IRS can investigate and may be able to obtain a copy of the W2 they received from your employer, or help you file your return without it if necessary.