What is a W-2 form?
A W-2 is the IRS form your employer sends each January reporting your total wages and how much federal, state, and payroll tax was withheld during the year. You use it to file your income tax return. It's different from a 1099, which reports income paid to independent contractors and others who aren't traditional employees.
Form W-2, Wage and Tax Statement, is the document your employer is legally required to send you each year summarizing what you earned and what was withheld from your paycheck. The IRS's About Form W-2 page covers the filing requirements. Employers send one copy to you, one to the Social Security Administration, and (for most states) one to your state tax agency — so, like a 1099, the government already has a copy before you file.
Key boxes on a W-2 — what they mean
- Box 1 — Wages, tips, other compensation: Your taxable federal wages for the year. This is usually lower than your gross salary because it excludes pre-tax deductions like traditional 401(k) contributions and pre-tax health premiums.
- Box 2 — Federal income tax withheld: The total federal tax your employer withheld from your paychecks and sent to the IRS on your behalf.
- Box 3 / Box 4 — Social Security wages / tax withheld: Wages subject to Social Security tax (up to the annual wage base) and the 6.2% withheld.
- Box 5 / Box 6 — Medicare wages / tax withheld: Wages subject to Medicare tax (no wage cap) and the 1.45% withheld (plus an additional 0.9% at higher incomes).
- Box 12 — Codes: A catch-all for items like 401(k) contributions (code D), HSA contributions (code W), and employer-sponsored health coverage cost (code DD) — each letter code maps to a specific item defined in the W-2 instructions.
- Box 16 / Box 17 — State wages / state tax withheld: Your state-taxable wages and state withholding, if applicable.
When you should receive it
Employers must furnish W-2s to employees, and file them with the SSA, by January 31 each year for the prior tax year. If you haven't received yours by early February, first check whether your employer offers electronic delivery through a payroll portal (many do, by default, unless you opted for paper mail) before assuming it's late.
W-2 vs. 1099 — the core difference
A W-2 means you're classified as an employee — your employer withholds taxes throughout the year and pays the employer's half of Social Security and Medicare tax. A 1099 (most commonly 1099-NEC) means you were paid as an independent contractor — no tax was withheld, and you owe self-employment tax covering both the employee and employer share of Social Security/Medicare. See what is a 1099 form for the full comparison and thresholds.
What to do if your W-2 has an error
- Contact your employer's payroll or HR department first and request a corrected Form W-2c — most errors (wrong SSN, wrong address, wrong wage amount) are simple payroll fixes.
- Don't file with a W-2 you know is wrong. Wait for the corrected version if possible, since the IRS receives the employer's copy too and mismatches can trigger a notice.
- If your employer won't correct it and the filing deadline is approaching, the IRS has a process (Form 4852, Substitute for Form W-2) for estimating and reporting your wages using your own pay records.
Educational only — not personalized tax advice
This page explains what a W-2 reports and how to read it. It is not tax preparation guidance for your specific return. Consult a CPA or use IRS-vetted tax software if you have questions about how your W-2 figures affect your filing.
IRS W-2 requirements
- Employers must furnish Form W-2 to each employee and file copies with the Social Security Administration by January 31 of the year following the tax year. — IRS — General Instructions for Forms W-2 and W-3
- Form W-2 reports wages paid and taxes withheld for employees; independent contractors and other non-employees instead receive Form 1099 variants, most commonly 1099-NEC. — IRS — About Form W-2
Key takeaways
- A W-2 reports your wages and tax withholding as an employee — your employer must send it by January 31.
- Box 1 (taxable wages) is often lower than your gross salary because of pre-tax deductions like 401(k) contributions.
- A W-2 means taxes were withheld throughout the year; a 1099 means they weren't, and you handle self-employment tax yourself.
- Request a Form W-2c from your employer to fix an error — don't file with numbers you know are wrong.
- The SSA and IRS receive a copy of your W-2 directly from your employer, so mismatches can trigger a notice.
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