A W2 form is a document your employer sends you showing how much you earned and how much tax was withheld from your paychecks during the year

The W2 (officially called the "Wage and Tax Statement") lists your gross income, federal income tax withheld, Social Security tax withheld, Medicare tax withheld, and state or local taxes withheld if applicable. Your employer is required by the Internal Revenue Service (IRS) to send you a copy by January 31 each year, and they also send a copy to the IRS and your state tax agency. You use the information on your W2 to file your federal and state income tax returns.

The form itself is a single page with boxes numbered 1 through 20, each containing a specific piece of tax information. Box 1 shows your taxable wages. Boxes 2 through 6 show different types of tax that were taken out of your pay. Other boxes show things like tips you reported, dependent care benefits, or contributions to a 401(k) plan. If you worked for more than one employer during the year, you will receive a separate W2 from each one.

Key Takeaways

  • Your employer must send you a W2 by January 31 showing your annual earnings and all taxes withheld from your paychecks.
  • The IRS also receives a copy of your W2, so the income and withholding amounts on your return must match what your employer reported.
  • You need your W2 to file your federal income tax return and usually your state income tax return as well.
  • If you worked for multiple employers in one year, you will receive a separate W2 from each employer.

The boxes on a W2 and what they mean

Box 1 contains your wages, tips, and other compensation subject to federal income tax. This is the number you use to calculate how much federal tax you owe. Box 2 shows the federal income tax your employer withheld from your paychecks throughout the year.

Boxes 3 and 5 show Social Security wages and Social Security tax withheld. Boxes 4 and 6 show Medicare wages and Medicare tax withheld. These are separate from federal income tax and are used to fund Social Security and Medicare programs. Box 12 may contain letters and amounts showing pre-tax contributions you made to things like health insurance, a 401(k), or an FSA (Flexible Spending Account). Box 20 shows state income tax withheld, if your state has an income tax.

Your name, address, and Social Security number appear at the top of the form, along with your employer's name, address, and Employer Identification Number (EIN). Make sure this information is correct before you file your taxes. If there are errors, contact your employer and ask for a corrected W2.

When you receive your W2 and what to do with it

Employers must mail or deliver your W2 by January 31 of the year following the tax year. For example, your 2024 W2 arrives by January 31, 2025. Some employers deliver W2s electronically through a find portal, while others mail paper copies. Check with your employer about how you will receive yours.

Once you have your W2, keep it in a safe place. You will need it to file your income tax return. If you file electronically, you do not need to mail the W2 to the IRS, but you should keep a copy for your records for at least three years. If you file a paper return, you may need to attach a copy of your W2 depending on your state's requirements.

If you do not receive your W2 by early February, contact your employer's payroll or human resources department. If your employer has closed or gone out of business, you can contact the IRS at 800-829-1040 or visit irs.gov for guidance on how to proceed.

W2 versus 1099: the difference

A W2 is issued by employers to employees. A 1099 form is issued to independent contractors, freelancers, and self-employed people. The key difference is that W2 employees have taxes withheld by their employer, while 1099 contractors are responsible for paying their own taxes, usually through quarterly estimated tax payments.

On a W2, your employer withholds federal income tax, Social Security tax, and Medicare tax. On a 1099, no taxes are withheld by the payer — you receive the full amount and must set aside money to pay taxes yourself. This is why 1099 contractors often owe money at tax time, while W2 employees may receive a refund if too much was withheld.

If you are unsure whether you should be classified as a W2 employee or a 1099 contractor, the IRS has guidelines on its website about worker classification. Misclassification can create tax problems for both the worker and the employer.

What to do if your W2 has an error

If you notice a mistake on your W2 — such as the wrong Social Security number, incorrect income amount, or wrong tax withholding — contact your employer when ready. Ask them to issue a corrected W2, which is called a W2-c (Corrected Wage and Tax Statement). Your employer will send the corrected version to you, the IRS, and your state tax agency.

Do not file your tax return with incorrect information on your W2. Wait for the corrected W2 if possible. If you have already filed and then discover an error, you can file an amended return using Form 1040-X. Keep documentation of the error and your employer's response in case the IRS questions the discrepancy.

How your W2 connects to your tax return

The income and withholding amounts on your W2 must match what you report on your federal tax return. When you file, you enter the amount from Box 1 of your W2 as your wages. The IRS compares the W2 your employer sent them with the return you file. If the numbers do not match, the IRS will contact you to explain the difference.

If your employer withheld too much tax during the year (shown in Box 2), you may receive a refund when you file. If too little was withheld, you may owe additional tax. The W2 is the starting point for calculating whether you owe or are owed money at tax time.

Frequently Asked Questions

What if I lost my W2?

Contact your employer and ask for a duplicate copy. Employers are required to keep records and can reissue W2s. If your employer no longer exists, you can contact the IRS at 800-829-1040 or use the IRS website to request a transcript of your wage and income information, which shows what the IRS received from your employer.

Do I need to file a tax return if I only have W2 income?

It depends on how much you earned. The IRS sets a minimum income threshold each year below which you do not have to file. However, if taxes were withheld from your paychecks, you may want to file anyway to claim a refund. Check the IRS website for the current filing threshold based on your age and filing status.

Can I file my taxes before I receive my W2?

You can file once you have all the information you need from your W2. If you have not received it by early February, contact your employer. You should not guess at the numbers or use last year's W2, as the IRS will flag mismatches when they receive your employer's copy.

What happens if my employer does not send me a W2?

Employers are legally required to send W2s by January 31. If you do not receive one by mid-February, contact your employer's payroll department in writing and keep a copy of your request. If they still do not respond, you can file a complaint with the IRS using Form 13909 (Information Referral) or contact your state's labor department.