The W2 form documents how much your employer paid you and how much tax was withheld

A W2 form is a record of your wages and the taxes your employer took out of your paychecks during the year. Your employer is required by law to send you one by January 31 each year if you earned $600 or more. The form shows your gross income, federal income tax withheld, Social Security tax withheld, Medicare tax withheld, and state or local taxes if applicable. You use this form to file your income tax return with the IRS.

The W2 is not optional — it is a legal requirement. Your employer must send you a copy and also file a copy with the IRS and your state tax authority. The IRS uses the W2 your employer files to check that the income and taxes you report on your tax return match what your employer reported. If the numbers do not match, the IRS will contact you.

Key Takeaways

  • Your employer must send you a W2 by January 31 if you earned $600 or more during the year.
  • The W2 shows your total wages, federal income tax withheld, Social Security tax, Medicare tax, and any state or local taxes taken from your pay.
  • You need the W2 to file your federal income tax return; the IRS expects the numbers on your return to match what your employer reported.
  • Your employer files a copy of your W2 with the IRS and your state, so mismatches between your return and the W2 will trigger IRS review.

What information appears on a W2

The W2 has boxes that show different types of income and tax withholding. Box 1 shows your wages, tips, and other compensation — this is the number you use on your tax return. Box 2 shows federal income tax withheld. Boxes 4 and 6 show Social Security and Medicare tax withheld. If you live in a state with income tax, boxes 17 through 20 show state and local wages and taxes.

The form also includes your employer's name, address, and tax ID number, and your name, address, and Social Security number. If you worked for more than one employer during the year, you will receive a separate W2 from each one. You must report income from all W2s when you file your tax return.

Why the IRS requires W2 forms

The W2 system allows the IRS to verify that employers are withholding the correct amount of tax and that workers are reporting their income accurately. When your employer files your W2 with the IRS, the agency can cross-check it against your tax return. If you report less income than your W2 shows, or if you claim tax credits you are not may have access to to, the mismatch will be flagged.

This system also protects you. If your employer fails to withhold enough tax, the W2 creates a record of what you actually earned, which can help resolve disputes. If your employer withheld too much, the W2 is the document you use to claim a refund.

How to use your W2 when filing taxes

You report the wages from Box 1 of your W2 on your federal tax return, usually on Form 1040. If you use tax software, you can enter the information from your W2 directly, and the software will fill in the corresponding lines. If you file by hand or with a tax preparer, you will need to provide them with your W2 or give them the numbers from it.

The federal income tax withheld (Box 2) is not reported as income — it is already accounted for in your total. Instead, it is used to calculate whether you are owed a refund or owe additional tax. If more tax was withheld than you actually owe, you get a refund. If less was withheld, you owe the difference.

What to do if you do not receive your W2

If your employer does not send you a W2 by February 15, contact them and ask for it. Keep a record of when you asked. If your employer still does not send it by mid-March, you can contact the IRS at 800-829-1040 or file Form 4852 (Substitute for Form W-2) with your tax return. Form 4852 lets you report your income based on your own records — pay stubs, bank deposits, or other documentation — when your employer fails to provide a W2.

If you worked for an employer who went out of business or cannot be located, the IRS can sometimes help you obtain a copy of your W2 from their records. Call the IRS or visit your local IRS office with your Social Security number and the name and address of the employer.

The difference between a W2 and a 1099

A 1099 form is used for independent contractors and self-employed workers, while a W2 is used for employees. If you are an employee, your employer withholds taxes and files a W2. If you are a contractor, the company that paid you files a 1099, and you are responsible for paying your own taxes. A 1099 does not show taxes withheld because no taxes are taken out — you pay them yourself when you file your return or make quarterly estimated tax payments.

Some people receive both a W2 and a 1099 in the same year if they worked as an employee for one company and as a contractor for another. You report both on your tax return.

Frequently Asked Questions

Can I file my tax return without my W2?

You can file using Form 4852 if your employer does not send you a W2, but the IRS will eventually match your return against the W2 your employer files. If the numbers do not match, the IRS will contact you. It is better to wait for your W2 or request a copy from your employer before filing.

What if my W2 has the wrong information on it?

Contact your employer immediately and ask them to issue a corrected W2, called a W2-C. Your employer must file the corrected version with the IRS. Do not file your tax return until you have the correct W2, because filing with wrong numbers can delay your refund or trigger an IRS notice.

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 asks questions about your return. If you are applying for a loan, mortgage, or rental housing, you may also need to show your W2 as proof of income. Many people keep them for seven years or longer.

What if I worked part of the year and earned less than $600?

Your employer is not required to send you a W2 if you earned less than $600. However, you may still owe taxes on that income depending on your age and filing status. Check IRS.gov or speak with a tax preparer to determine whether you need to file a return.