What Is a W-2? The Employee Tax Form Explained
Last updated 04/09/2026 by
Andrew Latham
Edited by
Andrew Latham
Summary:
A W-2 (Wage and Tax Statement) is a tax form your employer is required to send you by January 31 each year, reporting your total wages earned and taxes withheld during the prior tax year — the foundation of filing your federal income tax return.
It contains several key figures.
- Box 1 (Wages): Your total taxable wages for the year — the number that goes on your Form 1040 and determines what you owe.
- Box 2 (Federal income tax withheld): The total federal taxes your employer already paid on your behalf — applied as a credit against your tax liability when you file.
- Boxes 3–6 (Social Security and Medicare): Social Security wages and tax withheld (6.2% up to the wage base), and Medicare wages and tax withheld (1.45%, with an additional 0.9% on high earners).
Most employees receive their W-2 and are surprised to find their Box 1 wages are lower than their total paycheck earnings for the year. This is normal — pre-tax contributions to a 401(k), health insurance premiums, and HSA contributions reduce your taxable wages before Box 1 is calculated.
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When You Receive Your W-2
Employers are legally required to postmark or electronically deliver W-2 forms by January 31 each year. You should receive yours by early February. If you haven’t received it by mid-February, contact your employer’s payroll department first — then the IRS if necessary.
If you no longer work for the employer, they must still send your W-2 to your last known address. Updating your address before year-end ensures it arrives without delay.
How to Read Your W-2: Box by Box
| Box | What It Reports | Used On |
|---|---|---|
| 1 | Total taxable wages, tips, and other compensation | Form 1040, Line 1 |
| 2 | Federal income tax withheld | Tax credit on Form 1040 |
| 3 | Social Security wages (up to $168,600 in 2024) | Social Security tax calculation |
| 4 | Social Security tax withheld (6.2% of Box 3) | Verification only |
| 5 | Medicare wages (no wage cap) | Medicare tax calculation |
| 6 | Medicare tax withheld (1.45% of Box 5) | Verification / Additional Medicare Tax |
| 12 | Various codes: 401(k) deferrals (D), HSA (W), non-taxable benefits | Varies by code |
| 17 | State income tax withheld | State tax return |
Why Box 1 Is Lower Than Your Salary
Box 1 reflects taxable wages — your gross pay minus any pre-tax deductions. Common reductions include:
- Traditional 401(k) or 403(b) contributions
- Health, dental, and vision insurance premiums paid through a Section 125 cafeteria plan
- HSA contributions made through payroll
- Dependent care FSA contributions
- Commuter benefit deductions
Roth 401(k) contributions do not reduce Box 1, since they’re made with after-tax dollars.
Pro Tip: Cross-check Box 2 (federal withholding) against your last pay stub’s year-to-date federal tax column. They should match exactly. A discrepancy may indicate a payroll error. Also verify that your name, address, and Social Security number are correct — errors here can cause issues with the IRS matching your return to your Social Security record, potentially delaying your refund.
W-2 vs. W-4 vs. 1099
| Form | What It Is | Who Completes It | When |
|---|---|---|---|
| W-2 | Reports wages and taxes withheld | Employer sends to employee and IRS | By January 31 each year |
| W-4 | Tells employer how much to withhold | Employee fills out and gives to employer | When hired or when withholding changes |
| 1099 | Reports non-wage income (freelance, dividends, etc.) | Payer sends to recipient and IRS | By January 31 each year |
What to Do If Your W-2 Is Wrong
If any information on your W-2 is incorrect — wrong wages, SSN, name, or withholding amount — contact your employer immediately and request a corrected W-2 (Form W-2c). Employers must provide corrections promptly.
If you file before receiving a correction, you may need to file an amended return using Form 1040-X.
Key takeaways
- Your employer must send your W-2 by January 31. It reports total taxable wages (Box 1) and all taxes withheld for the year.
- Box 1 is typically lower than your total salary because pre-tax 401(k), health insurance, and HSA contributions reduce taxable wages before it’s calculated.
- Box 2 (federal income tax withheld) is a direct credit against what you owe when you file — a high Box 2 means a larger refund or smaller balance due.
- Social Security tax (6.2%) applies only up to the annual wage base ($168,600 in 2024). Medicare tax (1.45%) has no cap, with an additional 0.9% on wages above $200,000.
- Errors on your W-2 should be corrected before filing. Request a W-2c from your employer; if already filed, correct with Form 1040-X.
Frequently Asked Questions
What if I don’t receive my W-2?
Contact your employer first. If you still haven’t received it by February 15, call the IRS at 1-800-829-1040 — they can contact your employer on your behalf. As a last resort, you can file using Form 4852 (a substitute W-2) based on your final pay stub, but this may delay processing.
How many W-2s will I receive?
You receive one W-2 per employer you worked for during the year. If you held multiple jobs, you’ll have multiple W-2s. All must be reported when filing your federal return — each employer’s wages and withholding are added together on your Form 1040.
Can I file my taxes without my W-2?
You can request an extension to file, or use Form 4852 as a substitute based on your final pay stub. However, filing without your actual W-2 increases the risk of errors and IRS notices. The IRS receives a copy of your W-2 directly from your employer — if your return doesn’t match their records, it can trigger a review. See How to File Taxes Without a W-2 for step-by-step guidance.
Andrew is the Content Director for SuperMoney, a Certified Financial Planner®, and a Certified Personal Finance Counselor. He loves to geek out on financial data and translate it into actionable insights everyone can understand. His work is often cited by major publications and institutions, such as Forbes, U.S. News, Fox Business, SFGate, Realtor, Deloitte, and Business Insider.
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