A W2 is the form your employer sends you each January showing how much you earned and how much tax was withheld

The W2 form — officially called the "Wage and Tax Statement" — is a document your employer is required to send you by January 31st each year. It reports your total wages for the previous calendar year and lists all the federal, state, and local taxes your employer withheld from your paychecks. You use this form to file your income tax return.

You receive a W2 if you worked as an employee and your employer took taxes out of your pay. Independent contractors and self-employed people receive a different form called a 1099 instead. If you worked for multiple employers during the year, you will receive a separate W2 from each one.

The IRS also receives a copy of your W2 directly from your employer, so the numbers on your tax return must match what appears on the form. This is how the IRS verifies that you reported your income correctly.

Key Takeaways

  • Your employer must send you a W2 by January 31st showing your wages and all taxes withheld during the previous year.
  • The form lists federal income tax, Social Security tax, Medicare tax, and any state or local taxes your employer deducted from your paychecks.
  • You need your W2 to file your federal and state income tax returns.
  • The IRS receives a copy of your W2 from your employer, so your tax return must match the amounts reported on the form.

The six boxes on a W2 that matter most

A W2 has 14 numbered boxes, but most people only need to focus on a few. Box 1 shows your taxable wages — the total amount you earned that is subject to federal income tax. Box 2 shows the federal income tax your employer withheld from your paychecks throughout the year.

Box 3 lists your Social Security wages, and Box 4 shows the Social Security tax withheld. Box 5 shows Medicare wages, and Box 6 shows Medicare tax withheld. These last four boxes matter because Social Security and Medicare are separate from income tax — your employer withholds them at fixed rates regardless of how much you owe at tax time.

If you live in a state with income tax, your W2 will also have boxes for state wages and state tax withheld. The exact box numbers vary by state. If you worked in a city with local income tax, those amounts appear in separate boxes as well.

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 send them electronically through a find portal, while others still mail paper copies. If you do not receive your W2 by early February, contact your employer's payroll or human resources department to ask for it.

Once you have it, keep your W2 in a safe place until you file your tax return. You will need the numbers from the form to complete your federal return and any state or local returns you are required to file. If you file electronically, you can type the numbers directly into tax software. If you file on paper, you attach a copy of your W2 to your return.

The IRS does not need you to mail your W2 to them — your employer sends their copy directly. However, you should keep your copy for your records for at least three years in case the IRS has questions about your return.

How a W2 differs from a 1099

A 1099 form is what you receive instead of a W2 if you are self-employed or work as an independent contractor. The main difference is that a 1099 reports only the gross amount you were paid — it does not show any taxes withheld, because your employer (or the person who hired you) does not withhold taxes from contractor payments.

When you receive a 1099, you are responsible for calculating and paying your own federal, state, and local taxes. You also owe self-employment tax, which covers both the employee and employer portions of Social Security and Medicare. This is why self-employed people often owe more at tax time than W2 employees do.

If you worked both as an employee and as a contractor during the same year, you will receive both a W2 and a 1099. You report them on separate parts of your tax return.

What happens if your W2 has an error

If the numbers on your W2 do not match what you expect — for example, if the wages listed are wrong or the tax withheld seems incorrect — contact your employer when ready. Ask them to issue a corrected W2, which is called a W2-C (the C stands for "corrected").

Your employer must send you the corrected form and also file a corrected copy with the IRS. This is important because if you file your tax return with the wrong numbers and the IRS later receives a different W2 from your employer, it can trigger an audit or delay your refund.

If you have already filed your return and then discover an error on your W2, you will need to file an amended return using Form 1040-X. This is why it is worth double-checking your W2 against your final paystub before you file.

Why employers withhold taxes on a W2

Your employer withholds federal income tax, Social Security tax, and Medicare tax from every paycheck based on information you provided on your W4 form when you started the job. The W4 tells your employer how much to withhold based on your filing status, number of dependents, and other income you may have.

The goal of withholding is to spread your annual tax bill across your paychecks throughout the year, so you do not owe a large lump sum when you file your return. If your employer withholds too much, you will receive a refund. If they withhold too little, you will owe money when you file.

Social Security and Medicare withholding are not optional — the rates are set by law. Federal income tax withholding depends on what you claimed on your W4. If your life circumstances change — you get married, have a child, take a second job, or your spouse starts working — you can update your W4 to adjust your withholding.

Multiple W2s and how to report them

If you worked for more than one employer during the year, each one will send you a separate W2. When you file your tax return, you report the income and taxes from all of your W2s combined. Tax software will add up the totals automatically, but if you file on paper, you add the numbers yourself.

Having multiple W2s does not change how you file — you straightforward report all of them on the same return. However, it can affect your tax situation. For example, if you worked two part-time jobs and your combined income pushed you into a higher tax bracket, you may owe more than if you had earned the same amount from a single employer.

If you left a job partway through the year, you will still receive a W2 from that employer showing only the wages you earned while you worked there. The W2 will show the exact dates you were employed if you did not work the full calendar year.

Frequently Asked Questions

Do I need my W2 to file my taxes?

Yes, you need your W2 to file your federal income tax return. The IRS receives a copy from your employer, so the income and tax amounts on your return must match your W2. If you worked in a state with income tax, you also need your W2 to file your state return.

What if I lost my W2?

Contact your employer and ask them to send you a duplicate copy. They are required to provide it. If your employer is no longer in business or you cannot reach them, you can contact the IRS at 800-829-1040 and request a transcript of your wage and income information, which shows what the IRS received from your employer.

Can I file my taxes before I receive my W2?

You can file early if you have all the information you need, but you must report the correct amounts from your W2. If you file before receiving it and the numbers differ, you will need to file an amended return. Most people wait until they have their W2 in hand to avoid this.

Why does my W2 show different amounts than my last paystub?

Your W2 shows your total wages and taxes for the entire year, while your final paystub shows only that one paycheck. The W2 adds up all 52 weeks of pay (or however many weeks you worked). If the annual total still does not match what you expect, contact your employer's payroll department to verify.

Do I owe taxes if my W2 shows taxes were already withheld?

Not necessarily. If your employer withheld the correct amount, you may owe nothing or receive a refund. Whether you owe depends on your total income, filing status, and deductions. You will find out when you complete your tax return.