Takeaways
- Form W-2 is an IRS form prepared by businesses to report employee earnings.
- Form W-2 is issued to any employee who earned over $600 in compensation.
- Form W-2 helps the IRS track what employees owe for their tax returns.
- Form W-2s are sent to employees by the end of January for the prior tax year.
- Form W-2 tracks wages, bonuses, retirement savings, dependent care contributions, and withholding taxes to help you file your annual tax return.
What Is Form W-2?
A Form W-2 is a tax document your employer provides that shows your wages, bonuses, tips, and deductions throughout the year. Employers send these to you in January or February of the following year to reflect your earnings in the prior year.
You use the information provided in Form W-2 to complete your federal and state tax returns. It is important to note that if you are a freelancer, consultant, or contract worker, your income is not reported in Form W-2 but in Form 1099.
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How a Form W-2 Works
The IRS requires employers to issue a W-2 for all employees who make $600 or more during the year.[1] Your W-2 displays a ton of information about your compensation and what your employer paid for you throughout the working year.
Any employer-based benefit programs paid using pre- or post-tax dollars also appear on your Form W-2. Programs like health insurance, retirement plans, and dependent care contributions fall under those categories. The form also shows the detailed amounts of state, federal, and Medicare taxes you paid.
Your company must submit a copy of your W-2 to the Social Security Administration, Internal Revenue Service, and state and local tax authorities by January.[2] This allows the IRS and state tax officials to compare what you report as earned income on your tax return to what was reported by your employer.
The bottom line is that if you worked during the year and earned more than $600, you should receive a W-2 from your employer. These forms are vital to filing your taxes accurately.
What is Contained in a Form W-2?
(Source: IRS Website)
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Form W-2 Deadlines
To give you enough time to gather your documents and file your taxes before the deadline, the IRS requires employers to send you your W-2 by January 31 each year. You may receive your W-2 form electronically or a paper version via the United States Postal Service.
The IRS may offer employers a 30-day extension if they file a Form 8809 and meet one of the following qualifications:[3]
- A catastrophic event prevented operations or accessing essential business records (in a federal disaster area)
- A fire, casualty, or natural disaster affected operations
- It is the first year of business operations
- The person responsible for filing was ill, absent, or died
- Your employer did not receive data quickly enough to prepare correct statements
How to Get Your Form W-2
If you were employed and made more than $600 in wages or other compensation, you should automatically receive a W-2 form from your employer (even if you are no longer working at that company). Your employer uses your home address or email address on file to send your Form W-2.
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If you have moved since you started working for an employer, you should update your records as soon as possible to ensure your tax form reaches you promptly.
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You should receive your Form W-2 by early January. If you reach mid-February and still haven't received it through regular mail or electronically, you should contact your employer's human resources department. They should be able to verify the form was sent and by which method. You can also request an additional copy be sent to you.
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What if I Have Multiple Form W-2s?
Many people change jobs throughout the course of the year. If you started a new job, you could receive multiple Form W-2s. The first will be from your former employer and the second from your current company.
You may also receive multiple W-2 forms if another company acquired your current employer.
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How to Correct Your Form W-2
It would be best if you addressed errors on your Form W-2 immediately. If you notice your name is misspelled, your social security number is incorrect, or your wage amounts do not match your records, contact your employer immediately and request corrections.
Your company should promptly correct your Form W-2, but if they do not, you can request help from the IRS to get it corrected. You can call or make an appointment at a local Taxpayer Assistance Center. From there, the IRS will send your employer a letter requesting the corrected form within 10 days. You can also use pay stubs to calculate your income and withholdings on your tax return, but you will need to include Form 4852 as well.[4]
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You might need to file a tax extension if you run up against the tax deadline and still need your corrected W-2. In 2024, 19 million Americans filed automatic tax extensions.[5]
An extension gives you an additional six months to file your taxes. Suppose you owe or suspect you will owe taxes. You should still pay your anticipated tax amount to avoid accruing penalties and late fees.
Form W-2 vs. Form W-4
Many people mix up the differences between Form W-2 and Form W-4. Here is how they are different:
- Form W-4: When you start a new job, you will complete a Form W-4 and submit it to your human resources department. This form tells your company how much taxes to withhold from your paycheck, depending on your tax filing status and other personal tax information. You can see how much tax is withheld from your paycheck on your pay stub.
- Form W-2: Your W-2 is an end-of-the-year report issued to you as an employee, reflecting your wages and the taxes withheld. You receive this form from your current company or prior employer and are not required to fill anything out (only review it for accuracy before filing your taxes).
Smart Summary
A Form W-2 is a tax document issued by your employer that details your wages, salary, bonuses, and other compensation. You should receive your Form W-2 from every employer you worked for during the year if you made $600 or more while employed there. Your employer-issued W-2 helps you complete your tax return each year and lets you calculate your tax liability or tax return. Learn more about how to file your taxes.
You Might Also Like:
(1) Internal Revenue Service. About Form W-2, Wage and Tax Statement. Last Accessed January 12, 2025.
(2) Internal Revenue Service. Topic no. 752, Filing Form W-2 and W-3. Last Accessed January 12, 2025.
(3) Internal Revenue Service. About Form 8809, Application for Extension of Time to File Information Returns. Last Accessed January 12, 2025.
(4) Internal Revenue Service. If you don’t get a W-2 or your W-2 wrong. Last Accessed January 12, 2025.
(5) Internal Revenue Service. IRS delivers strong 2024 tax filing season; expands services for millions of people on phones, in-person and online with expanded funding. Last Accessed January 12, 2025.
