What Is a W-2 Form?
In plain English
A W-2, Wage and Tax Statement, is an IRS form employers send to employees and the IRS each year. It reports total wages paid during the tax year and all federal, state, and local income taxes withheld, along with Social Security and Medicare contributions. You need your W-2 to file an accurate federal income tax return.
What Information Does a W-2 Form Contain?
A W-2 includes your total wages, tips, and other compensation; federal income tax withheld; Social Security wages and tax withheld; Medicare wages and tax withheld; state wages and state income tax withheld; and any pretax benefits like 401(k) contributions or health insurance premiums. Box codes A through Z flag special situations.
When Will You Receive Your W-2 and What If It's Wrong?
Employers must furnish W-2s by January 31. If yours does not arrive by mid-February, contact your employer or HR department. If you spot an error — wrong Social Security number, incorrect wages — request a corrected W-2 (Form W-2c) before filing. Filing with an incorrect W-2 can trigger IRS notices or delays in processing.
How Does a W-2 Differ From a 1099 Form?
A W-2 is issued by employers to employees; taxes are withheld throughout the year. A 1099 is issued to independent contractors, freelancers, or those receiving investment or other income — no withholding occurs. W-2 employees share payroll tax liability with employers, while 1099 recipients pay the full self-employment tax themselves.
Frequently asked questions
What do I do if I have multiple W-2 forms?
Report income from each W-2 separately on your tax return. Most tax software prompts you to enter each one. The IRS cross-checks W-2s against employer filings, so omitting one will trigger a notice or audit.
Why does Box 1 on my W-2 show less than my full salary?
Pretax deductions like 401(k) contributions, health insurance premiums, and FSA contributions reduce Box 1 wages. These amounts are excluded from federal taxable income but may still appear in Social Security and Medicare wage boxes.
Keep exploring
Related terms
1099 Form
A 1099 form reports various types of non-employment income paid to individuals, including freelance earnings, dividends, and retirement distributions. Recipients use it to report income on their tax return.
Withholding
Withholding is the portion of your paycheck your employer sends directly to the IRS and state tax authorities on your behalf throughout the year. It serves as a pay-as-you-go mechanism for income taxes.
Self-Employment Tax
Self-employment tax covers Social Security and Medicare contributions for self-employed individuals who do not have an employer withholding these taxes. The current combined rate is 15.3%.
Payroll Tax
Payroll taxes fund Social Security and Medicare and are split between employers and employees. Understanding payroll taxes helps clarify the true cost of employment on both sides of the relationship.
Tax Filing Status
Your tax filing status determines your tax bracket thresholds, standard deduction amount, and eligibility for various credits and deductions. Choosing the correct status is one of the most impactful decisions in tax planning.