The W-2 Form, officially known as the “Wage and Tax Statement,” is a year-end tax form issued by employers to employees and the Internal Revenue Service (IRS) in the United States. It reports an employee’s total annual wages, tips, and other compensation, as well as the amount of federal, state, and other taxes withheld from their paycheck. The form is critical for employees to accurately file their personal income tax returns.
In addition to wages and tax withholdings, the W-2 may also include information on contributions to retirement plans, dependent care benefits, and other employer-provided benefits. Employers are required to provide W-2 forms to their employees by January 31 of each year, covering the previous calendar year’s earnings.
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Key Facts
- Annual Income Reporting: Summarizes wages, salaries, tips, bonuses, and other compensation earned by the employee during the calendar year.
- Withholding Overview: Shows amounts withheld for federal income tax, Social Security tax, Medicare tax, and applicable state and local taxes.
- Filing Requirement: Employers must send W-2s to employees and the IRS by January 31 each year; employees use it to complete their tax return.
- Legal Obligation: Required for all employees who earned $600 or more and had any amount withheld for taxes.
- Multi-Copy Form: Includes multiple copies for federal filing, state filing, employee records, and employer records.
1. Who receives a W-2 form?
Employees (not independent contractors) who earned $600 or more and had any taxes withheld during the year receive a W-2 from their employer.
2. What happens if I don’t receive my W-2?
Contact your employer first. If it's not resolved, you can contact the IRS for guidance or use Form 4852 as a substitute when filing taxes.
3. What’s the difference between a W-2 and a 1099?
A W-2 is for employees and includes tax withholdings. A 1099 (typically 1099-NEC) is for independent contractors and does not include tax withholdings.
4. What do the numbered boxes on the W-2 mean?
Each box reports specific information, like total wages (Box 1), Social Security wages (Box 3), Medicare wages (Box 5), and tax withholdings (Boxes 2, 4, and 6).
5. Do I need to submit my W-2 with my tax return?
Yes. If you file a paper return, include a copy of your W-2. If you file electronically, input the form’s information as prompted in your tax software.
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