W-2 Form: What Is It, Who Gets One, and More
A W-2 form is a tax form used by employers to report an employee’s wages, withheld taxes, and other information to employees, the IRS, and the Social Security Administration each year. Employers must also provide copies of each worker’s W-2 form to the employee, who then uses the form to file their federal and state income tax returns.
Key Takeaways
- Form W-2 contains important tax information from your employer related to your earnings, tax withholding, benefits, and more.
- Only employees get a W-2 form. Freelancers and other independent contractors don’t get W-2 forms.
- All your W-2 forms should be sent to you by January 31 each year. That way, you should have them in time to prepare your income tax return.
- If you don’t receive a W-2 form from your employer, or you receive an incorrect form, contact your employer immediately to see if a W-2 form has been issued for you or to request a corrected form.
What is a Form W-2?
Form W-2, Wage and Tax Statement, is an IRS tax form that’s used to summarize an employee’s wages and the taxes withheld from their paychecks during the year. The form also includes information about certain employer-provided benefits, such as health insurance, adoption and dependent care assistance, health savings account contributions, and more.
An employer is responsible for filing a W-2 form for most employees with the Social Security Administration (SSA) each year. The SSA shares the information included on the W-2 forms with the IRS. Copies of a worker’s W-2 must also be provided to the employee, who then uses the form to complete their federal and state income tax returns.
Why are W-2 forms important?
While W-2 forms may seem like just another piece of paper to collect during tax season, they’re actually quite important for a number of reasons. Here are a few of the ways your W-2 forms can be helpful:
Tax return preparation. First and foremost, W-2 forms are essential for filing your taxes accurately. The information they provide about your earnings from employment and the taxes withheld from your paycheck are needed for calculating your tax liability and determining whether you owe taxes or are entitled to a refund.
Employment and income verification. W-2 forms provide a record of your employment and wages. This can help verify your work and income history, which you might need for non-tax reasons like applying for a loan or credit card.
Personal financial planning. Your W-2 forms serve as a record of your income for the year, which can be useful for budgeting and financial planning. They also provide a snapshot of your tax withholdings, which can help you determine if you need to adjust your tax withholding for the following year to avoid owing taxes or receiving a refund that’s too big.
Social Security and Medicare benefits. The Social Security taxes and Medicare taxes withheld from your paycheck during the year are reported on your W-2 form. Eligibility for and the amount of your Social Security and Medicare benefits are based in part on the amount of these taxes you pay over the years. If there’s a problem with your benefits down the road, your W-2 forms can provide a record of the taxes withheld for any given year.
Fraud prevention. W-2 forms can help the IRS detect and prevent identity theft and tax fraud. The IRS compares the information on your tax return with the data on your W-2 form to ensure that everything is accurate. If there are any discrepancies, it could trigger an investigation that catches a thief.
Who receives a Form W-2?
You should only receive a W-2 form if you’re an employee. This includes full-time, part-time, and temporary/seasonal employees. If you only work for a company as a freelancer or are otherwise an independent contractor, you shouldn’t receive a W-2 from them.
Generally, your employer has to send you a W-2 form if you’re an employee and they either:
- paid you $600 or more in wages
- withheld any income, Social Security, or Medicare tax from your wages
- would have had to withhold income taxes from your wages if you (1) had not claimed an exemption from withholding on Form W-4, or (2) had claimed no more than one withholding allowance on a pre-2020 W-4 form
You could receive multiple W-2s for a single tax year if, during the year, you:
- changed jobs
- worked more than one job where you were considered an employee
- the company you worked for was acquired by another company
When are W-2s sent out?
To ensure you have it in time for tax season, the IRS requires employers to send W-2 forms to their employees no later than January 31 following the close of the tax year. So, for example, by January 31, 2025, for W-2s for the 2024 tax year. Generally, this means W-2s must be mailed by January 31, but not necessarily received by employees by this date.
If you’re an employer, you also have to file W-2 forms with the SSA by January 31. However, you can request a 30-day extension by submitting Form 8809, Application for Extension of Time to File Information Returns. You need to indicate that at least one of the criteria for granting an extension applies. The IRS will generally allow an extension only in limited cases for extraordinary circumstances or a catastrophe, such as a natural disaster or fire destroying the records needed to file the W-2 forms.
Even if you request and receive an extension to file W-2s with the SSA, you still have to provide your employees copies of their W-2s by January 31, unless you’re granted an extension to provide W-2s to your employees after the due date. You can request an extension by faxing a Form 15397 to the IRS. Since the extension isn’t automatic, you have to include the reason why you need more time. If approved, the extension will generally be for no more than 15 days, unless the need for up to 30 days is clearly shown.
What if you don’t receive a W-2 form?
If you don’t receive your W-2 by early February, contact your employer. They might be able to provide you with an electronic version for use until you receive the paper version in the mail.
If you don’t have a W-2 form by the end of February, you can call the IRS at 800-829-1040 and ask them to contact your employer. If you don’t receive your W-2 in time to file your income tax return, you can use Form 4852 as a substitute to file with your return.
TurboTax Tip:
You also might be able to use online tax software like TurboTax to import your W-2 even if you didn’t receive it in the mail yet.
What if you find an error on your W-2 form?
If you receive your W-2 and notice a mistake on it – whether your name is misspelled, the Social Security number is wrong, there’s an incorrect dollar amount, or something else – let your employer know and ask for a corrected W-2.
If you can’t get a corrected form from your employer, follow the instructions above for missing W-2 forms – that is, first call the IRS for help, then use Form 4852 as a substitute if necessary.
How to read your W-2 form
Your Form W-2 contains important information that you need to complete your tax return. It shows your total wages from the employer and the amount of taxes withheld from your paycheck for the year. Among other things, it might also contain information about:
- tips
- contributions to a 401(k)
- contributions to a health savings account
- premiums your employer pays for health coverage
- other employee benefits
Here’s a quick rundown of what’s reported on a W-2 form.
Boxes A to F – Identifying Information
Boxes A to F on a W-2 form include identifying information about you and your employer. You’ll see your Social Security number (Box A), name (Box E), and address (Box F) in these boxes. Your employer’s employer identification number (EIN) (Box B), name and address (Box C), and control number (Box D), if any, appear in them as well.
Boxes 1 and 2 – Compensation and Federal Income Tax Withholding
Box 1 shows the total taxable amounts paid to you by your employer during the year. This includes any wages, salary, tips, bonuses, prizes, and various other types of taxable compensation. Box 2 shows the total amount of federal income tax withheld by your employer on your behalf.
Boxes 3 to 6 – Social Security and Medicare Wages and Tax Withholding
Boxes 3 and 5 show the amount of your earnings subject to Social Security and Medicare taxes, respectively. Boxes 4 and 6 show the amount of Social Security and Medicare taxes withheld from your pay during the year. The amounts in Boxes 3 and 5 might be different from the amount in Box 1. This often happens in situations where taxes on some of your income are deferred, such as when you contribute to a traditional 401(k) or other similar plan.
Boxes 7 and 8 – Tips
If you earned money through tips during the year, Box 7 shows how much you reported in tips, while Box 8 shows how much money your employer allocated to you in tips.
Box 9 – Reserved
The box once reported an employer benefit which no longer exists (advance earned income credit payments). The box is now grayed out as a result.
Box 10 – Dependent Care Benefits
If your employer provided or paid for dependent care benefits, Box 10 reports this amount.
Box 11 – Nonqualified Plans
If you received distributions from a non-qualified deferred compensation plan, this information is reported in Box 11.
Box 12 – Codes
If you received other types of compensation or reductions to your taxable income, the amount will be reported in Box 12 along the appropriate one- or two-letter code. Items reported in Box 12 include contributions to a 401(k) plan, employer contributions to a health savings account, nontaxable sick pay, adoption benefits, and the taxable cost of group-term life insurance over $50,000.
Box 13 – Statutory Employee, Retirement Plan, and Third-Party Sick Pay
Box 13 indicates whether you worked as a statutory employee not subject to federal income tax withholding, participated in an employer-sponsored retirement plan (such as a 401(k) plan), or received sick pay through a third-party (like an insurance company).
Box 14 – Other Information
Box 14 may include other federal tax information your employer wants to give you that doesn’t fit into any of the other W-2 boxes. Among other things, this could include state disability insurance taxes your employer withheld, union dues, payments for uniforms, health insurance premiums your employer deducted from your pay, educational assistance payments, and more.
Boxes 15 to 20 – State and Local Information
Boxes 15 to 20 are used to report state and local income tax information, including your employer’s state ID number (which is assigned by the state), state and local wages, and withholding of state and local income taxes.
There’s room on the W-2 form to report information for two states and/or localities. If your employer needs to report information for more than two states or localities, they need to prepare a second Form W-2 for you to use.
More FAQs about W-2 forms
If you want to know more about W-2 forms, here are answers to some other frequently asked questions about the form.
What is the difference between a 1099-NEC form and a W-2 form?
Generally speaking, both the W-2 and 1099-NEC forms are information returns meant to report income you received from work and taxes withheld from it during the tax year. The primary difference between the two lies in the circumstance under which you receive them and the taxes withheld from the income.
Your employment status dictates whether you’ll receive a W-2 form or a 1099-NEC form. When you work as an employee, your employer will send you a W-2 (assuming the requirements listed above are satisfied, which is usually the case). On the other hand, if you work as a freelancer or other type of independent contractor, the company will generally send you a Form 1099-NEC if you’re paid at least $600 during the tax year.
There’s also a big difference between W-2 and 1099-NEC forms when it comes to tax withholdings. Employers are not only required to withhold federal income taxes from your pay, but typically Social Security and Medicare taxes as well. Depending on where you live, state and local income taxes may also have to be withheld. All of these withheld taxes for the year are included on your W-2 form.
If you’re an independent contractor, the business paying you doesn’t usually withhold taxes on your behalf. Instead, you’re generally responsible for paying income taxes periodically during the year with estimated tax payments – which don’t show up on Form 1099-NEC. However, if you’re subject to backup withholding, the amount withheld from your pay for this purpose will be reported on your 1099-NEC form.
What is the difference between a W-4 form and a W-2 form?
While similar in name, there are also big differences between a W-4 form and W-2 form.
First, who prepares each form differs. If you work as an employee, you prepare a W-4 form and give it to your employer. On the other hand, your employer prepares a W-2 after the tax year and sends it to you and to the SSA.
Second, the W-4 provides information that your employer uses to determine how much federal income tax to withhold from your paycheck. The W-2 reports how much you earned from your employer, as well as how much income, Social Security, and Medicare tax was withheld from your pay during the tax year.
It’s a good idea to review your income tax withholding annually to make sure the correct amount of tax is being withheld from your paychecks. If you receive a large tax refund each year – and would rather have a bigger paycheck each pay period and smaller refund at tax time – you can submit a new W-4 at any time to have your employer change your withholding.
Likewise, if you owe the IRS money when you file your tax return, you can complete a new W-4 and have more income tax withheld from each paycheck. This can help you avoid having to pay the IRS at tax time and reduce or eliminate IRS penalties for underpayment of taxes.
To get a better sense of how much federal income tax you should have withheld from your pay, use TurboTax’s W-4 withholding calculator.
How much money do I need to make to get a W-2 form?
If you’re an employee and are paid at least $600 during the year, your employer is required to send you a W-2 form for the year.
However, as noted above, you can still be issued a W-2 form if you earn less than $600 for the year. For example, you should get Form W-2 if you made less than $600, but your employer withheld income, Social Security, or Medicare tax from your paycheck. If you claim an exemption from withholding for the year, your employer should also send you a W-2 form if they would have had to withhold income taxes from your pay if you didn’t claim the exemption.
What is “Cafe 125” on a W-2 tax form?
Not to be confused with a place to go for coffee, Cafe 125 is short for a “cafeteria plan” established under Section 125 of the U.S. tax code. A cafeteria plan is a type of employee benefits plan that allows workers to choose from a variety of benefits options and generally pay for them with pre-tax dollars, which reduces the employee’s taxable income. Employees also don’t have to pay Social Security and Medicare taxes on certain pre-tax benefit payments, so those taxes are reduced as well.
Benefits frequently offered through a cafeteria plan include:
- 401(k) plans
- health insurance
- group term life insurance policies
- adoption assistance
- dependent care assistance
- health savings accounts (HSAs)
- flexible spending accounts (FSAs)
If you see Cafe 125 on your W-2 form (typically in Box 14), this should not change how you prepare your tax return. The money set aside for benefits you selected from your employer’s cafeteria plan should already be subtracted from the total amount of your compensation reported in Box 1 of your W-2.
What is Form W-2G?
If you gamble and win, your winnings need to be included in your taxable income. That’s why a casino or other gambling establishment might give you a Form W-2G immediately at the gambling venue or mail you one by January 31 of the following year. You will use the W-2G form to prepare your tax return for the tax year you won the money.
A W-2G form shows how much you won at the payer’s establishment. You might not necessarily receive a W-2G for all of your gambling winnings, but you still need to report all your winnings on your tax return. If you receive multiple W-2G forms, you also have to include the winnings from all of them when preparing your tax return.
You may also be able to deduct gambling losses – but only up to the amount of your gambling winnings.
Can I file taxes without my W-2 forms?
You can still file your federal income tax return if you don’t have your W-2 forms. In fact, you’re still required to file on time even if you don’t have a W-2 form for whatever reason. As noted above, if you don’t receive a W-2 form, or you get an incorrect one, you might eventually have to complete Form 4852 and use it as a substitute W-2 form to file your return.
Do I have to attach my W-2 to my tax return?
If you’re filing your federal income tax return using tax software (like TurboTax), you’ll be asked to enter information from your W-2 forms at some point. That information will be sent to the IRS electronically along with your tax return, so you do not need to send your W-2 forms separately.
However, if you’re filing a paper tax return by mail, you need to attach Copy B of each W-2 form you receive to the front of your federal tax return.
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